Congress Should Review SEC Chair’s Crypto Stance – Brad Garlinghouse
Since the start of the year, the US Securities and Exchange Commission (SEC) chairman, Gary Gensler, has been enforcing crypto regulatory policies against the fledgling digital asset industry. Accordingly, the CEO of Ripple Labs, Brad Garlinghouse, wants the US Congress to intervene by addressing a recent statement made by the chair of the securities watchdog.
“Existing Laws Enough For Crypto” – Gensler
Gensler was reported to have claimed that the current securities laws of the United States are enough to regulate the crypto industry. But, the CEO of Ripple, Brad Garlinghouse, did not support the SEC chair’s statement.
According to Garlinghouse, Gensler believes the commission can determine which crypto asset can be classified as securities without any guidelines.
Gensler’s assertion emerged after a House Appropriation Committee hearing. However, Gensler noted that Congress could only provide more clarification and that no legislation is needed.
Meanwhile, the Ripple boss believes that such a decision can only be made with proper legislation rather than following the personal opinion of the commission’s chair. On his official Twitter page, Garlinghouse stated that it is beyond understanding for Gensler to use his personal view as the standard to determine security rather than relying on Congress from which the SEC derives its oversight powers.
The Ripple boss slammed the SEC’s head, stating that Gensler was behaving like an autocrat and that the lack of guidelines paved the way for ambiguity, which the commission exploits. As the court case between the SEC and Ripple continues, the crypto community calls for a comprehensive regulatory framework for the industry.
Will Banks Stop Services To Crypto Firms?
As the ongoing debate over traditional banks’ exposure to cryptocurrency continues, an analyst has raised concerns over a move by banks to stop offering their services to players in the digital asset industry. In a recent interview, Scott Melker revealed a “clear directive” targeting the industry from decision-makers for banks to take this step.
According to him, regulators are currently working on ensuring that crypto companies will find it difficult to access banking services. However, Melker noted that crypto assets like Bitcoin and Ethereum are too big to crumble, but regulators can disrupt on-ramps and off-ramps banking services to US-based firms and investors.
Thus, he explained that this would significantly limit the growth of the two largest crypto tokens by market capitalization. Furthermore, Melker points to the ongoing battle for dominance in the crypto ecosystem between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
The analyst disclosed that the confusion over classifying specific crypto assets as either securities or commodities would impact the industry’s future.
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