Ripple CEO Brad Garlinghouse Claims SEC Chair Will Make Biden Lose Election
Ripple CEO Brad Garlinghouse criticized US Securities and Exchange Commission (SEC) Chair Gary Gensler’s views and actions regarding the crypto industry on June 25, suggesting they could adversely affect President Biden’s re-election bid in November.
Ripple CEO Calls for Removal of US SEC Chair Over Crypto Policies
Garlinghouse reacted to the US SEC’s Chair’s viral interview with journalist Annmarie Horder at the Bloomberg Invest event in New York on June 25.
In the interview, Gary Gensler slammed the crypto industry, describing it as a field where former trailblazers were either imprisoned or battling court cases.
He argued that the sector is non-compliant with current regulations, which have led to convictions of top executives in the field.
The Ripple CEO quickly dismissed Gensler’s comments on the interview, tagging them as “absolute nonsense.”
Garlinghouse criticized Gensler’s leadership style regarding his oversight of FTX’s collapse, noting that the exchange’s bankruptcy in November 2022 revealed severe mismanagement.
Press Release pic.twitter.com/rgxq3QSBqm
— FTX (@FTX_Official) November 11, 2022
Investigations showed that FTX had misappropriated client funds, with founder and CEO Sam Bankman-Fried (SBF) using these funds for political contributions, donations to institutions like Stanford, and personal luxuries.
There were reports of a close relationship between SBF and Gensler before FTX’s bankruptcy announcement, however. Sources say some of Gensler’s old cronies also worked for FTX and were responsible for arranging meetings between SBF and the SEC chair.
Congressman Tom Emmer even alleged that Gensler had been helping Bankman-Fried and FTX abuse legal loopholes to establish a regulatory monopoly.
Interesting. @GaryGensler runs to the media while reports to my office allege he was helping SBF and FTX work on legal loopholes to obtain a regulatory monopoly. We're looking into this. https://t.co/SznowgcP6V
— Tom Emmer (@GOPMajorityWhip) November 10, 2022
Notably, this reaction from the Ripple CEO is rooted in the ongoing legal battle between Ripple and the US SEC, which began in 2020 when Ripple was accused of selling unregistered security. This led to the SEC’s proposal of a $2 billion penalty against the company, but Ripple filed an opposition to the SEC’s fine request by suggesting $10 million instead.
The legal battle took another turn following the $4.47 billion settlement with Terraform Labs and its founder, Do Kwon. This made Ripple draw parallels by arguing for a penalty reduction. Ripple’s attorneys stated that while Terraform faced fraud charges that wiped out billions in value, Ripple is only accused of selling unregistered securities without fraud charges.
The Bitcoin Election: Who Wins?
While the SEC continues to give the Biden administration negative press, crypto observers believe the agency is setting up pro-crypto candidate Donald Trump for a big win in November.
The Biden administration, with the assistance of the US SEC, has enforced strict policies and initiated litigations against crypto-centric firms, significantly clamping down on crypto innovations.
In contrast, Trump positions himself as a savior for the crypto industry, as the former U.S. president called for an end to crypto hostility in America.
Trump’s support for crypto is evident in his campaign’s decision to receive crypto donations to build a “crypto army” to fight the “anti-crypto army.”
Earlier in June, Trump promised to become crypto president at a fundraising event as he is trying to distinguish himself from the stringent policies implemented by the Biden administration.
He has also vowed to implement integrations and novel measures to help the industry in the U.S. These promises have swayed many pro-crypto voters towards Trump, indicating a potential shift in voter sentiment as the election approaches.
