Ripple CEO Brad Garlinghouse has publicly criticized Securities and Exchange Commission (SEC) Chair Gary Gensler, claiming that his actions could lead to President Joe Biden‘s defeat in the upcoming election.
What Happened: During a Bloomberg Invest Summit in New York on Tuesday, Gensler said, “This is a field where the leading lights from a couple of years ago are either in jail, about to go to jail, or awaiting extradition.”
He further said, “The public has really been harmed. And there's significant non-compliance in the field.”
Garlinghouse responded on social media, calling Gensler’s comments “absolute nonsense” and criticizing the SEC Chair for missing the collapse of FTX and for his perceived close ties with Sam Bankman-Fried.
Garlinghouse went on to say, “If he was really ‘working for the American people’ as he says, he would have been fired a long time ago. Gensler will cause Biden to lose the election.”
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Why It Matters: This heated exchange comes against the backdrop of a prolonged legal battle between the SEC and Ripple XRP/USD.
The agency accused Ripple of raising $1.3 billion through the sale of XRP, which it claims is an unregistered security.
A recent ruling by Judge Analisa Torres found that while some of Ripple's XRP sales were not securities, others were indeed investment contracts.
Billionaire entrepreneur Mark Cuban has also voiced similar criticisms of Gensler, suggesting that his handling of cryptocurrency regulation could significantly influence the 2024 presidential election.
Cuban has previously stated, “If Joe Biden loses, there is a good chance you will be able to thank Gary Gensler and the SEC,” highlighting the importance of the crypto vote among younger and independent voters.
He accused Gensler of making it difficult for legitimate crypto companies to operate, thereby stifling innovation and entrepreneurship.
Former President Donald Trump, the leading Republican candidate, has positioned himself as a pro-crypto advocate.
Trump has accepted crypto donations for his campaign and criticized the Biden administration for its stance on digital assets.
When asked to comment on Cuban’s accusations that he could cost Biden the election, Gensler maintained, “I don’t speak about elections.”
In addition to these remarks, Gensler provided an update on the progress of spot Ethereum ETFs in the U.S.
He stated that the progress was “going smoothly” and emphasized that it depends on asset managers making full disclosures for their registration statements to become effective.
The SEC approved 19b-4 forms for eight Ethereum ETFs last month, and analysts expect these products could be live by early July.
What’s Next: As the political landscape continues to intertwine with the evolving world of digital assets, industry observers are keenly watching these developments.
Discussions and insights into such intersections will be a focal point at Benzinga’s Future of Digital Assets event on Nov. 19.
Read Next: 54% Of Japanese Institutional Investors Plan To Invest In Crypto In The Next 3 Years
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