Ripple and SEC’s Ongoing Battle Intensifies with Sharp Criticism of Gensler

The conflict between Ripple Labs and the Securities and Exchange Commission (SEC) continues to escalate.

Recently, co-founder Chris Larsen criticized SEC Chair Gary Gensler, calling him the “worst public servant of all time” during a CNBC interview. Larsen highlighted the failures of the U.S. crypto regulatory framework while expressing distrust in both Gensler and Federal Trade Commission Chair Lina Khan but did not state whether he believes Gensler should be removed.

In the ongoing legal battle, the SEC claims Ripple’s sale of XRP constitutes an unregistered securities offering, while Ripple argues that XRP should not be classified as a security. In October 2023, Ripple sought to have the charges dismissed, with CEO Brad Garlinghouse accusing the SEC of trying to undermine him personally.

After a July 2023 ruling that found Ripple’s sales to institutional buyers violated securities laws while its programmatic sales to retail exchanges were compliant, the SEC appealed the decision. Ripple also filed a cross-appeal, stating it would pursue every option in its defense.

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Initially, many in the crypto sector viewed Gensler’s leadership positively due to his tech background, including teaching blockchain at MIT. However, his aggressive stance against exchanges like Binance and Coinbase has shifted those expectations.

Ripple’s Garlinghouse has criticized Gensler for obstructing crypto development and failing to prevent the FTX collapse. The issues between Ripple and the SEC date back to late 2020, when Larsen and Garlinghouse were named in a lawsuit accusing them of aiding Ripple’s alleged violations of securities laws.

Kosta Gushterov