Key Insights
- Brad Garlinghouse and billionaire Mark Cuban criticize SEC Chair Gary Gensler, claiming his approach to crypto regulation could cost President Biden the 2024 election.
- Controversy stems from Gensler’s comments at Bloomberg Invest Summit, where he suggested many crypto industry leaders are facing legal troubles.
- Amid regulatory tensions, Gensler reports “smooth” progress on spot Ethereum ETFs.
NEW YORK (MarketsXplora) – Ripple CEO Brad Garlinghouse has launched a scathing attack on U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler, claiming his actions could cost President Joe Biden the upcoming election, amidst escalating tensions between the crypto industry and regulators.
The controversy ignited after Gensler’s remarks at a Bloomberg Invest Summit in New York on Tuesday, where he stated, “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.”
Garlinghouse swiftly responded on social media platform X, labeling Gensler’s comments as “absolute nonsense” and accusing him of missing the FTX scandal while cozying up to its founder, Sam Bankman-Fried.
“If he was really ‘working for the American people’ as he says, he would have been fired a long time ago,” Garlinghouse added. “Gensler will cause Biden to lose the election.”
The heated exchange comes amid an ongoing legal battle between the SEC and Ripple since 2020, when the agency accused Ripple of raising $1.3 billion through the sale of XRP, which it claims is an unregistered security.
Garlinghouse’s sentiments echo those of billionaire entrepreneur Mark Cuban, who last month suggested that the SEC’s approach to crypto regulation could sway younger and independent voters in the 2024 election.
“If Joe Biden loses, there is a good chance you will be able to thank Gary Gensler and the SEC,” Cuban stated, criticizing Gensler for making it “nearly impossible for legitimate crypto companies to operate.”
The controversy has taken on political dimensions, with former President Donald Trump, the presumptive Republican nominee, expressing support for crypto and accepting it for campaign donations.
Read also! Trump May Speak at Bitcoin 2024 Conference as Crypto Becomes Election Issue
Sources told MarketsXplora that they’ve noticed a “shift” in the Biden administration’s tone towards crypto, suggesting a new willingness to understand digital assets.
When asked about Cuban’s accusations at the Bloomberg event, Gensler declined to comment on election matters.
In a separate development at the same event, Gensler provided an update on the progress of spot Ethereum ETFs, describing it as “going smoothly.” He emphasized that the next steps involve asset managers making full disclosures for their registration statements to become effective.
The SEC approved 19b-4 forms for eight Ethereum ETFs last month, with analysts anticipating they could go live as early as July 2, pending the effectiveness of their registration statements.
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