Gensler’s Crypto Comments Draw Backlash from Ripple CEO

Published: Dec 22, 2023
Written By:
Vignesh Karunanidhi
Milk Road Writer

Securities and Exchange Commission (SEC) Chairman Gary Gensler sparked controversy this week over his video about the crypto industry. Gensler claimed in the video that widespread noncompliance in the crypto realm is undermining market integrity and confidence.

The SEC chair’s comment provoked backlash from leading crypto figures, who accused Gensler of hypocrisy and failing to provide regulatory clarity.

  • Gensler claims “a lot of noncompliance” in the crypto space.
  • Says it makes it hard for “good faith actors” to compete.
  • Crypto leaders accuse Gensler of cozying up with Wall Street.
  • Calls the SEC chief “useless” and demands his firing.

In a tweet containing a video on December 22, Gensler asserted that there is rampant non-compliance in crypto. He stated that it exists not just with securities laws but also with anti-money laundering and other regulations aimed at protecting investors.

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Gensler argues about issues in the crypto industry

The SEC chair argued this lawlessness has enabled fraud and manipulation, hurting retail investors, who can only claim losses in bankruptcy court. According to Gensler, the scale of issues in crypto also makes it tough for legitimate crypto companies to compete.

Gensler’s critique of the crypto industry quickly drew outrage from industry proponents. Dogecoin co-founder Billy Markus blasted the SEC chief as “useless” for never outlining clear crypto rules.

Ripple CEO Brad Garlinghouse accused Gensler of “stunning hypocrisy” for being overly friendly with Wall Street while taking enforcement action against crypto firms. Thinking Crypto podcast’s Tony Edwards demanded Gensler’s firing for having “no allegiance to the law” and destroying consumer protections.

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The reactions highlight ongoing frustration with the SEC’s spotty guidance on crypto regulation and a lack of clarity, which many blame for stunting innovation and leaving investors exposed.

While Gensler isn’t alone in citing issues like fraud and manipulation in crypto, his failure to provide a transparent framework for regulation continues to draw heat. Without clear rules of the road, critics argue overbroad crackdowns can only spread more uncertainty.

Vignesh Karunanidhi

Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.

Vignesh Karunanidhi
Milk Road Writer
Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.