The war of words between key figures at Ripple Labs and the Securities and Exchange Commission (SEC) continues.
In the latest twist in the Ripple v SEC saga, Ripple co-founder Chris Larsen delivered a stinging comment from SEC Chairman Gary Gensler, saying he is the “worst official of all time.”
Larsen commented on Gensler in a recent CNBC interview after highlighting the failed crypto policies in the country and his decision to support Kamala Harris’ campaign.
Although Larsen shared his distrust of Gensler and even Lina Khan of the Federal Trade Commission, he did not provide a specific answer when asked whether he agreed to remove Gensler from his position.
Ripple and SEC: A History of Charges and Countersuits
Ripple’s feud with the SEC dates back to late 2020, when Larsen and Ripple’s CEO Brad Garlinghouse were named as suspects. According to the SEC’s lawsuit, the duo was responsible for aiding and abetting Ripple’s alleged violations of securities laws.
.@Ripple Chairman Chris Larsen calls Gary Gensler
The worst public servant in American history 🤣 pic.twitter.com/1jQyG5FbJN
— 𝗕𝗮𝗽𝗲XRP (@BankXRP) October 26, 2024
In SEC v. Ripple, the agency alleged that Ripple sold an unregistered securities offering. Ripple responded that XRP should not be treated as a security, using the SEC director’s previous comments to argue its case.
In October 2023, the company filed a motion to drop the charges. Garlinghouse commented that the agency just wanted to ruin him personally.
SEC goes after Ripple (again), and then a counter-objection against Ripple
In a July 2023 ruling, a judge ruled that while Ripple’s sales of its token to institutional buyers violated existing securities laws, its programmatic sales to retail exchanges are above board.
Nearly two months after the judge’s ruling, the agency immediately appealed. In its Form C filing, the agency shared that it will continue to pursue the Ripple execs.
After the SEC appeal, Ripple also filed a cross-appeal. The Form C filing came a few days after company executives stated they would leave nothing on the table as part of the defense.
Gensler’s tough stance on crypto
Many in the crypto industry initially saw a bright future ahead with Gensler at the helm. Gensler was tech-savvy, well-known in academic circles, and even took a blockchain course at the Massachusetts Institute of Technology (MIT).
However, Gensler took 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 captured the industry’s attention. Gensler’s aggressive policies towards crypto and Ripple have generated a lot of heated words.
Ripple’s Garlinghouse has already called out Gensler for holding back cryptocurrency progress and sued the agency for failing to stop the collapse of the FTX.
Featured image from CNBC, chart from TradingView