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Ripple co-founder Chris Larsen is weighing in on how the U.S. Securities and Exchange Commission (SEC) is handling the crypto space.<\/p>\n
In a new interview with Bloomberg Technology, Larsen says<\/a> the SEC\u2019s recent legal defeats confirm the United States is taking the wrong approach to crypto regulation.<\/p>\n Most recently, a federal judge ruled<\/a> that the SEC has to reconsider Grayscale\u2019s application to convert the Grayscale Bitcoin Trust into an exchange-traded fund (ETF).<\/p>\n Says Larsen,<\/p>\n \u201cYou saw in the latest challenge on the Bitcoin ETF, again SEC lost. But not only that, the judge really admonished the SEC, really called them out in a way that you don\u2019t see very often. I think it\u2019s just more proof of Gary Gensler\u2019s decision of sort of engaging in this regulation by enforcement rather than getting clear laws. He knows they\u2019re not clear. He just likes that lack of clarity so that he can go after anybody and make up the rules as he goes along through bullying.<\/em><\/p>\n And that\u2019s not the American way. This should be at Congress. We should have clear rules from the legislature, not through the sort of unelected, power-hungry and really misplaced decision makers that you see in Gary Gensler.\u201d <\/em><\/p>\n Larsen says the SEC\u2019s lawsuit against Ripple is another example. The SEC sued Ripple in late 2020, alleging the San Francisco payments company was selling XRP as an unregistered security.<\/p>\n In July, a federal judge ruled<\/a> that Ripple\u2019s automated, open-market sales of XRP, referred to as programmatic sales, did not constitute security offerings, contrary to what the SEC alleged.<\/p>\n The judge did, however, side with the SEC\u2019s claim that Ripple\u2019s sale of XRP directly to institutional buyers constituted a securities offering.<\/p>\n Larsen says America\u2019s current approach to crypto regulation and enforcement is driving innovation in blockchain technology to other countries that have clearer regulations on digital assets.<\/p>\n \u201cUnfortunately, when people, entrepreneurs ask I say, \u2018Don\u2019t start in the US, unfortunately. You could go to London, you go to Singapore, you go to Dubai \u2013 and this is not because they don\u2019t have any rules. Quite the opposite. They have clear rules that protect consumers and also celebrate innovation.\u2019<\/em><\/p>\n Why isn\u2019t America leading that call? That\u2019s what we\u2019ve always been and we\u2019ve got to get back to it. And by the way, that\u2019s the engine that has made San Francisco what it is, and to have the federal government hamstringing us is just unacceptable.\u201d<\/em><\/p>\n Don’t Miss a Beat \u2013 Subscribe<\/a> to get email alerts delivered directly to your inbox <\/span><\/em>
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