In a recent post on X, Ripple Chief Executive Brad Garlinghouse outlined a bold 100-day roadmap for Donald Trump to make sweeping reforms to the U.S. Securities and Exchange Commission or provide greater clarity on cryptocurrency regulation. The call comes in the wake of frustrations, Garlinghouse has voiced over the current regulatory landscape around digital assets, such as Ripple’s XRP token.
Removing SEC Chairman Gary Gensler
Garlinghouse’s suggestion is to demand the firing of current SEC Chairman Gary Gensler. When he wrote his post recently on social media, stating that, “Fire Gensler. Day 1, no delays.” This is an expression of frustration from Garlinghouse in response to what he feels are enforcement activities by the SEC and opaque guidance in the crypto space.
Some possible successors he named included former officials Christopher Giancarlo, Brian Brooks, and Daniel Gallagher. All, according to Garlinghouse, could help restore a fair regulatory environment through a more open approach toward digital assets. Garlinghouse stated that these candidates will help in the “rebuilding of the rule of law and reputation at the SEC.”
Ripple’s Ongoing Legal Battle with the SEC
Garlinghouse is calling for regulation reform as the company faces an SEC suit, filed last December, alleging that the company’s digital currency, XRP, is a security and, therefore, unregistered sales of securities. That has become a point of attention for the industry because a decision will classify other similar digital assets.
In July 2023, the partial ruling by Judge Analisa Torres favoured Ripple with the argument that XRP sales through public exchanges were not securities transactions. However, it concluded that institutional sales of XRP by Ripple to bigger purchasers violated the Securities Act. As a result, Ripple was charged $125 million for these unregistered offerings. The case remains outstanding, although the SEC was expected to file its appeal by October 2024. It has dragged on long enough to make the author’s campaign for more transparency in regulation.
Promoting Bipartisan Efforts for Digital Asset Legislation
He also made a call for increased bipartisan collaboration while laying out his roadmap agenda on cryptocurrency legislation. He underscored that the work needs to be done in a collaborative way between Republicans and Democrats, especially with regard to the digital asset market structure bill that is under review in the Senate.
In this regard, it will eventually become a starting point for having a stable and supportive regulatory environment for digital assets. Garlinghouse symbolically called for a “family dinner” between the two parties to find common ground on the matter. For Garlinghouse, a bipartisan approach would mean the new policies do not overbalance innovation with investor protection and regulatory fairness.
Another element of Garlinghouse’s proposal is clarity on the regulatory treatment of Ethereum. He believed that, just like Bitcoin, Ethereum and XRP should not be considered a security. Basically, Bitcoin has been held as a commodity, and Garlinghouse wishes the same for other leading cryptocurrencies. For him, clarity on classification would give companies a more predictable regulatory framework in which to grow without fear of arbitrary enforcement actions.
One such area where the cryptocurrency community has been repeatedly calling for consistent rules is in digital asset classification. Garlinghouse’s position generally depicts the urge for fairness by saying that the current regulatory ambiguity acts as an innovation hindrance in this particular case, as companies leave the U.S. for friendlier places.
Garlinghouse’s public pronouncement confirms a widely shared sentiment from many in crypto leadership: frustration with the way the SEC has approached the space. Most people believe this posture of enforcement-first is stymieing innovation, creating an uncertain environment for businesses and investors alike. “Garlinghouse’s roadmap, then, is a push forward for a clearer, more transparent framework under new administration toward a pro-growth, not an anti-growth environment to nurture digital asset space,” according to him.
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