The battle between Ripple and the SEC continues to heat up, with both sides throwing punches.
Ripple’s CEO Slams Gensler
Ripple co-founder Chris Larsen recently slammed SEC Chair Gary Gensler, calling him the “worst public servant of all time.” Larsen made these comments in a CNBC interview, criticizing Gensler’s handling of crypto policy and his decision to support Kamala Harris’ presidential campaign. While Larsen expressed his distrust of Gensler and even the FTC’s Lina Khan, he didn’t say whether he wanted Gensler removed from his position.
A History of Legal Battles
Ripple’s legal feud with the SEC dates back to 2020 when the agency sued both Larsen and Ripple CEO Brad Garlinghouse, accusing them of violating securities laws. The SEC claimed that Ripple sold XRP as an unregistered security, while Ripple argued that XRP shouldn’t be classified as a security.
In 2023, a judge ruled that Ripple’s sales of XRP to institutional buyers violated securities laws, but its sales to retail exchanges were legal. However, the SEC immediately appealed the ruling, stating that it would continue to pursue the Ripple executives. Ripple also filed a cross-appeal.
Gensler’s Crypto Crackdown
Gensler’s approach to crypto has been controversial, with many in the industry initially welcoming his tech-savvy background and experience. However, Gensler has taken a tough stance on crypto, launching investigations against major players like Binance and Coinbase.
The SEC’s campaign against Ripple has been particularly contentious, with Garlinghouse accusing Gensler of hindering crypto’s progress and failing to prevent the FTX collapse.
