Main navigation

Ripple Policy Head Reveals Crucial Flaw in SEC Boss's Crypto Views

Fri, 04/07/2023 - 16:30
article image
Gamza Khanzadaev
Ripple's Susan Friedman slams Gary Gensler's views on crypto and securities compatibility
Ripple Policy Head Reveals Crucial Flaw in SEC Boss's Crypto Views
Cover image via
Read U.TODAY on
Google News

In a recent Twitter post, Securities and Exchange Commission (SEC) Chairman Gary Gensler stated that there is nothing incompatible in the crypto markets with the securities laws. He emphasized that the SEC's goal is to bring the crypto field into compliance with this legislation, ensuring that investors in digital assets receive the same protections they get on other markets.

Ripple v. SEC: Top Lawyer Provides Insight into Potential End Date of May 6

There is, however, a critical flaw in Gensler's statement, according to Susan Friedman, head of policy at Ripple. Parrying it, Friedman noted that unlike securities, cryptocurrencies usually do not involve a financial claim on the offerer and can be settled in real time without intermediaries. She argues that such differences require specific rules rather than canned assurances that a one-size-fits-all approach is the right way to operate.

Stick, carrot or both?

The crypto industry has been booming in recent years, with numerous new coins and tokens being introduced to the market. However, this has led to concerns about the lack of regulatory oversight, which has resulted in some fraudulent activities.

Ripple CEO Garlinghouse Urges US Lawmakers to Address SEC Chair's Assertions

While Gensler and Friedman may have different views on the regulatory framework that should be implemented on the crypto market, both seem to agree that some form of regulation is necessary to protect investors and ensure the integrity of the market.

As the crypto market continues to grow, it remains to be seen how regulatory authorities will balance the need for investor protection with the desire to encourage innovation and growth in this exciting new field - if there is such a desire at all.

article image
About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.