The war of words between key people at Ripple Labs and the Securities and Exchange Commission (SEC) continues.
In the latest twist to the Ripple v SEC saga, Ripple co-founder Chris Larsen offered a scathing commentary on SEC Chairman Gary Gensler, saying he is the “worst public servant of all time.”
Larsen commented on Gensler in a recent interview with CNBC after highlighting the failed crypto policy in the country and his decision to support Kamala Harris’ campaign.
While Larsen shared his distrust of Gensler and even Lina Khan of the Federal Trade Commission, he did not offer any specific answer as to whether he agreed to remove Gensler from his position.
Ripple and SEC: a history of lawsuits and countersuits
Ripple’s dispute with the SEC dates back to late 2020, when Larsen and Ripple CEO Brad Garlinghouse were named as defendants. According to the SEC’s lawsuit, the duo was responsible for aiding and enabling Ripple’s alleged securities law violations.
.@Vibe President Chris Larsen calls Gary Gensler
The worst public servant in the history of the United States 🤣 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.
By October 2023, the company requested the charges be dismissed. Garlinghouse commented that the agency simply wanted to ruin him personally.
SEC Goes After Ripple (Again) and Then a Ripple Counter-Appeal
In a July 2023 ruling, a judge ruled that while Ripple’s sale of its token to institutional buyers violated existing securities laws, its programmatic sales to retail exchanges are legal.
Nearly two months after the judge’s verdict, the agency immediately filed an appeal. In its Form C filing, the agency shared that it will continue to pursue Ripple executives.
After the SEC appeal, Ripple also filed a counter-appeal. The Form C filing came a few days after company executives stated they would leave nothing on the table as part of their defense.
Gensler’s tough stance on cryptocurrencies
Many in the crypto industry initially saw a bright future ahead with Gensler at the helm. Gensler was a technology expert, well known in academia and even taught a blockchain course at the Massachusetts Institute of Technology (MIT).
However, Gensler took a tough stance on cryptocurrencies, 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 on cryptocurrencies and Ripple have generated many heated words.
Ripple’s Garlinghouse has already criticized Gensler for impeding the progress of cryptocurrencies and criticized the agency for failing to stop the collapse of FTX.
Featured image from CNBC, chart from TradingView
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