The word war between Ripple Labs executives and the Securities and Exchange Commission (SEC) continues.
In the latest version of the Ripple v SEC saga, Ripple’s founder, Chris Larsen, offered a scathing comment on SEC Chairman Gary Gensler, saying he is “the worst public servant ever.”
Larsen commented on Gensler in a recent CNBC interview after highlighting the country’s failed crypto policy and his decision to support Kamala Harris’ campaign.
While Larsen spoke of his lack of confidence in Gensler and even the Federal Trade Commission’s Lina Khan, he did not give a specific answer as to whether he agreed to remove Gensler from his position.
Ripple and the SEC: A History of Litigation and Controversy
Ripple’s beef with the SEC began in late 2020 when Larsen and Ripple’s CEO Brad Garlinghouse were named as defendants. According to the SEC’s indictment, the duo was responsible for aiding and abetting Ripple’s securities violations.
.@Ripple Chairman Chris Larsen calls Gary Gensler
Worst public servant in US history 🤣 pic.twitter.com/1jQyG5FbJN
— 𝗕𝗮𝗹𝗲XRP (@BankXRP) October 26, 2024
In SEC v. Ripple, the agency suspects that Ripple sold an unregistered security offering. Ripple responded that XRP should not be considered a security, using the previous opinions of the SEC director to argue its case.
In October 2023, the company filed a motion to dismiss the charges. Garlinghouse commented that this organization only wants to destroy him personally.
SEC Goes After Ripple (Again), Then Ripple Counter-Appeals
In a July 2023 decision, the judge ruled that while Ripple’s sale of its token to institutional buyers violated existing securities laws, its planned sale to the retail exchange was above board.
About two months after the judge issued the ruling, the agency quickly filed an appeal. In its Form C filing, the agency shared that it will continue to pursue Ripple’s management.
After the SEC complaint, Ripple also filed a cross-complaint. The filing of the C form came a few days after the company’s management said they would leave nothing on the table as part of their defense.
Gensler’s Tough Stance On Crypto
Many in the crypto industry initially saw a bright future for Gensler at the helm. Gensler was tech-savvy, well-known in the academic field, and even managed blockchain courses at the Massachusetts Institute of Technology (MIT).
However, Gensler pursued a tough stance on crypto, starting with the agency’s campaign against Binance and Coinbase.
In recent years, the SEC’s campaign against Ripple has caught the attention of the industry. Gensler’s aggressive policies on crypto and Ripple have generated many hot words.
Ripple’s Garlinghouse has already called out Gensler for hindering crypto progress and slammed the agency for failing to stop the fall of FTX.
Featured image from CNBC, chart from TradingView