JAKARTA - Ripple CEO Brad Garlinghouse criticized the Chairman of the US Securities and Exchange Commission (SEC), Gary Gensler, for his views and actions on the crypto industry on June 25. Garlinghouse stated that Gensler's policy could have a negative impact on President Joe Biden's re-election efforts in November.
Garlinghouse reacted to Gary Gensler's viral interview with journalist Annmarie Horder at a Bloomberg Invest event in New York. Quoted from Crypto News, Gensler stated that the crypto industry is full of unlawful violations, with many pioneers in this area imprisoned or facing legal cases.
In response to this, Garlinghouse immediately rejected Gensler's statement as "empty". He criticized Gensler's leadership style, especially in handling the fall of FTX in November 2022, which revealed serious mismanagement.
Research shows that FTX has abused client funds, with its founder, Sam Bankman-Fried (SBF), using those funds for political contributions and personal luxury. There have been reports of close ties between SBF and Gensler before the announcement of the bankruptcy of FTX, with some of Gensler's old colleagues working at FTX and arranging meetings between SBF and SEC Chair. Members of Congress Tom Emmer even accused Gensler of helping Bankman-Fried and FTX of utilizing legal loopholes to build monopoly on regulations.
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Garlinghouse's strong reaction is linked to the ongoing legal battle between Ripple and the SEC, which began in 2020 when Ripple was accused of selling securities without permission. The SEC proposed a fine of US$2 billion (around Rp32.8 trillion) against the company, but Ripple objected and suggested a fine of US$10 million (around Rp164 billion) instead.
This legal battle got even more complicated after the settlement of 4.47 billion US Dollars (approximately IDR 73.3 trillion) with Terraform Labs and its founder, Do Kwon. Ripple argued that despite Terraform's charges of fraud cost billions, Ripple was only accused of selling securities without permission without allegations of fraud.
While the SEC continues to provide a negative image to Biden's administration, crypto observers believe that this agency actually paved the way for pro-crypto candidate Donald Trump to achieve a big win in November.
The Biden administration, with the help of the SEC, has implemented strict policies and litigation against crypto companies, severely restricting innovation in the sector. In contrast, Trump has placed himself as the savior of the crypto industry, with his campaign to accept crypto donations to build a crypto army' against anti-crypto soldiers.
Trump also promised to become president of crypto and end his hostility towards crypto in America. These promises have drawn many pro-crypto voters towards Trump, pointing to a potential shift in voter sentiment ahead of the election.
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