Ripple (XRP) CEO Brad Garlinghouse scrutinized U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler on June 25 regarding his approach to cryptocurrency regulation. Garlinghouse asserted that Gensler’s stance could lead to political collapse for the Democratic Party, alluding to potential defeat for President Joe Biden’s reelection this November.ย
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On June 25, Bloomberg Live’s X (formerly known as Twitter) account tweeted about Genslerโs recent interview. The tweet included a clip from the interview with a caption quoting Gensler’s current crypto stance: “This is a field where the leading lights from a couple of years ago are either in jail, about to go to jail, or awaiting extradition.”ย
Gensler received tremendous backlash from his bearish crypto stance in this tweet. One person replied, “Translation: โLook, if we allow people to have control over their own money, how are we going to control them then?'” Another account with 40,000 followers simply said, “F*** you Gary.” This portrays how fed up the community is with the mainstream political media covering crypto with mendacious narratives. People are candidly addressing their opinions.
Most notably, Garlinghouse ostracized the tweet, stating, “Absolute nonsense coming from @GaryGensler today.” He then highlighted Gensler’s hypocrisy, “And this slander about โall crypto execs going to jail’ from the man who completely missed FTX (and cozied up to SBF), and wasn’t even invited to the DOJ announcement about Binance.” This assertion highlights the irony in Genslerโs comments about crypto executives going to jail, especially when he once stood with Sam Bankman-Fried (former FTX CEO) amid fraud accusations. Also, his comment underscores the crypto communityโs frustration, who believe the current regulatory environment stifles crypto’s innovation in America.ย
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Garlinghouse finished his tweet with a bold remark: “Gensler will cause Biden to lose the election.” This sentiment echoes a growing concern that the SEC’s aggressive crypto stance could have implications beyond the financial sector. It emphasizes the need for a new political advocate to save crypto from being run into the ground.ย
The crypto community commended Garlinghouse’s take, replying, “Brad says what everyone thinks โฆ I love it.” Another X account with 40,000 followers commented, “Who doesn’t h*te Gary Gensler?” The crypto community seems to agree that Gensler’s stance is two-faced, with an underlying mission to sabotage crypto.
Analysts speculate that former U.S. President Donald Trump could leverage this “call to action” for votes in the upcoming election. A recent Bloomberg article mentions that similar to the post-2016 election stock market, Trump’s victory could have a similar effect on crypto. Analysts included, “If the election sentiment shifts more Republican, crypto will end up as the primary โTrump trade’ and hopes a favorable regulatory regime would change the โuse-case’ narrative around blockchains.”
The ongoing tension between the SEC and the crypto industry has caused the crypto community to criticize Gensler’s stringent approach. Well-known crypto figures like Garlinghouse are speaking up to defend crypto and retaliate against the industryโs biggest critics. The Democratic Party faces challenges keeping the crypto community satisfied, potentially forfeiting votes to Trump. Nonetheless, the SEC and crypto’s relationship is fraught with challenges, and this conflict’s aftermath will have everlasting effects on virtual currency.ย
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