Ripple CEO Brad Garlinghouse has commented on the SEC’s ongoing discussion with Grayscale regarding the launch of a spot Bitcoin ETF.
Brad Garlinghouse, the CEO at Ripple, has reacted to reports about the discussion between the SEC and crypto asset manager Grayscale regarding a spot bitcoin exchange-traded fund (ETF).
SEC Opens Talks With Grayscale
As reported earlier, the SEC recently opened talks with Grayscale regarding the company’s bid to launch a spot Bitcoin ETF. It can be recalled that the securities regulator had denied Grayscale’s application to convert its Bitcoin Trust (GBTC) into a spot Bitcoin ETF.
The harsh decision prompted Grayscale to take legal action against the regulator. In a landmark ruling in August, the U.S. Court of Appeals for the District of Columbia Circuit ruled in favor of Grayscale. The court ordered the SEC to review the decision that resulted in the denial of Grayscale’s application to launch a spot-traded Bitcoin fund.
Following the decision, the SEC has now opened talks with Grayscale. The leading asset manager is currently discussing the conversion with the SEC’s Division of Corporation Finance, and Trading and Markets.
Garlinghouse Bashes SEC Chair, Calls Him a Political Liability
Reacting to the development, Garlinghouse bashed SEC Chair Gary Gensler due to the commission’s delay in opening talks with Grayscale for the spot Bitcoin ETF conversion.
It only took a few years to “open talks”!
When you compare this to how (many) other countries engage proactively and constructively with industry, you truly begin to understand how much of a political liability Gensler’s SEC has become.
— Brad Garlinghouse (@bgarlinghouse) November 10, 2023
Garlinghouse described Gensler as a political liability based on his approach to crypto regulation. He emphasized that financial regulators in other countries engage “proactively and constructively” with the crypto industry.
However, the same cannot be said for the U.S. SEC, which has been criticized for regulating the industry through enforcement. It bears mentioning that Garlinghouse is not the first Ripple exec to call Gensler a political liability.
Earlier this year, Ripple General Counsel Stuart Alderoty stated that Gensler serves a political liability due to his adverse enforcement actions against crypto-related firms.
It is worth noting that the SEC and Ripple have been embroiled in a multi-year legal battle since December 2020. Although Gensler did not file the lawsuit against Ripple, the SEC chair has acted in ways that have continued to upset the blockchain company and other crypto stakeholders.
Under Gensler’s leadership, the SEC has sued multiple crypto firms, including Coinbase and Binance, for allegedly violating federal securities laws.
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