Ripple CEO Brad Garlinghouse has expressed growing concern regarding the selection of the new U.S. Securities and Exchange Commission (SEC) chair. Meanwhile, investors are bracing themselves for potential oversight risks in the crypto sphere.
Ripple’s CEO, Brad Garlinghouse is not hiding his reservations about the newly selected chair of U.S. Securities and Exchange Commission (SEC), sounding off alarms over the potential risks of regulatory oversight in the burgeoning world of cryptocurrencies.
Garlinghouse, who has been vocal about the need for clear crypto regulations, has taken to social media to share his apprehension over the appointment of the new SEC leader, whose stance on crypto regulation remains uncertain.
His comments come amidst the legal battle between Ripple and the SEC over an alleged sale of unregistered securities. The lawsuit, filed by the SEC, claims that Ripple sold XRP as an unregistered security, a charge Ripple strenuously denies.
SEC Expected to Appoint New Chair
The U.S. Securities and Exchange Commission is anticipated to appoint University of Pennsylvania law professor Gary Gensler as its new chair. Gensler previously chaired the Commodity Futures Trading Commission (CFTC) under the Obama administration and has vast knowledge in blockchain and cryptocurrency regulations.
Despite Gensler’s background and experience in the crypto industry, it is yet unclear how he plans to regulate cryptocurrencies. His appointment has, however, created a sense of worry among crypto enthusiasts and investors regarding the future of crypto oversight.
Ripple’s Legal Battle with the SEC
The lawsuit against Ripple filed by the SEC last December has had significant repercussions on the company and the value of XRP. The regulatory body accuses Ripple of raising over $1.3 billion through the sale of XRP in an unregistered securities offering.
Since the lawsuit was filed, several cryptocurrency exchanges have delisted XRP, and the token’s value plunged significantly. Despite this, Ripple insists that XRP is not a security but a cryptocurrency.
Growing Concerns Over Crypto Regulation
The lack of clear crypto regulation and the increasing oversight risks have led to growing concerns among cryptocurrency companies. Ripple, among other companies, has criticized the SEC for its lack of clear regulatory guidelines regarding cryptocurrencies.
These concerns underline the urgent need for clear, precise, and fair regulatory guidelines that will encourage innovation while protecting investors from potential risks. As the regulatory environment continues to evolve, the actions of the new SEC chair will significantly impact the future of cryptocurrencies in the U.S.
