Ripple’s head is spinning because the SEC would treat XRP as a stock

Ripple CEO Brad Garlinghouse recently lashed out at the head of the US Securities and Exchange Commission (SEC). According to Garlinghouse, SEC chief Gary Gensler determines which crypto tokens are securities and which are not based on his own decision, not on the basis of the legal framework. Garlinghouse wrote that published on Thursday tweetthat “the time has come for the elected American officials to pay attention to this”.

According to the SEC, there is no need to clarify the legal framework

According to the Ripple leader, without a clear legal background, only individual decisions determine important issues. Plus, he also questioned whether the SEC has any interest in defining pure legal regulations. Garlinghouse’s outburst came after Gensler said current securities laws cover exactly what’s going on in crypto markets. Plus, if the legislature had to be involved in clarifying the situation, it would completely undermine the legal stability of the securities market. A lawsuit has been ongoing between Ripple and the SEC since December 2020. In its key issue, the SEC claims that Ripple XRP is a security, while the company constantly disputes this.

The messaging has been going on between the parties since then, for example, Gensler has repeatedly called on the crypto exchanges to consult with the authorities on how they could meet the legal requirements. Basically, though according to Ripple’s head and others, this is just to gather more information for later litigation. Recently, for example, Coinbase went to the SEC for a position, but instead of guidelines, they received threats and subpoenas. So, in short, as long as Gensler leads the SEC, no crypto company can feel safe.

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