Ripple CEO Brad Garlinghouse has urged US lawmakers to address recent statements made by SEC Chair Gary Gensler, who implied that the existing securities laws are adequate for regulating the cryptocurrency market.
Garlinghouse's comments come in response to Gensler's belief that the SEC can determine which digital assets qualify as securities and that legislation is unnecessary.
After a House Appropriations Committee hearing, the SEC head suggested that current securities laws encompass most of the activity occurring within the crypto markets. He added that while Congress could act to provide further clarification, he does not believe additional authorities are necessary.
The Ripple CEO contends that such decisions should be based on legislation, rather than the SEC Chair's personal viewpoint.In his tweet, Garlinghouse expressed his concern, stating that it is "beyond comprehension" for the SEC boss to claim that he dictates what constitutes a security, rather than relying on the legislation from which his agency derives its power.
Garlinghouse accused Gensler of behaving like an autocrat, suggesting that the lack of clear jurisdiction allows ambiguity to serve as a source of power for the SEC.
As the SEC lawsuit against Ripple continues, the debate over the appropriate regulatory framework for cryptocurrencies remains unresolved, prompting industry leaders to seek clarity from elected officials.