Benzinga - Ripple (CRYPTO: XRP) CEO Brad Garlinghouse criticized Securities and Exchange Commission (SEC) Chair Gary Gensler, characterizing his position on crypto regulation as rigid and counterproductive.
What Happened: Speaking at the World Economic Forum in Davos, Garlinghouse told CNBC on Jan. 16 that Gensler’s approach is not in “the best interest of the citizenry” and could stifle economic growth. He claimed that Gensler’s actions have rendered him a “political liability.”
Garlinghouse took issue with Gensler’s classification of most crypto assets as securities and speculated that it may be driven by politics more than economics or consumer protection. “I think Gary Gensler is doing the same thing over and over again, expecting to win in court, despite repeated losses,” he said.
Comparing the regulatory frameworks of the EU and other regions to the United States, Garlinghouse voiced concerns over the U.S. falling behind in crafting comprehensive crypto regulations. “In the United States, trying to go public with a very hostile regulator that's approved your S-1, that doesn't sound like a lot of fun to me.”
Addressing the SEC’s approval of Bitcoin (CRYPTO: BTC) ETF, Garlinghouse spoke on the implications for other crypto-based ETFs. “I think it’s a certainty. I’m not going to put a horizon on the time, but I think there will be other ETFs for sure,” he said, without committing Ripple to such an offering.
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Why It Matters: The Ripple CEO has conveyed that while an Initial Public Offering (IPO) remains a possibility for the blockchain-based payment solutions company, it is not on the immediate agenda. “And we'll evaluate again, as we have new regulators sitting at the United States SEC.” He added, however, that an IPO is “not an immediate term priority” for Ripple, suggesting the company will continue to assess the situation over time.
The deliberation over an IPO comes as similar financial ventures have been making headlines, with Circle, the creators of the USDC stablecoin, recently filing for an IPO in the U.S.
Photo Courtesy: Flickr
Price Action: At the time of writing, XRP was trading at $0.57, down 0.75% in the last 24 hours, according to Benzinga Pro.
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