Gensler Called ‘Worst Public Servant’ In Scathing Remarks By Ripple Co-Founder
The word war between Ripple Labs’ key people and the Securities and Exchange Commission (SEC) continues.
In the latest twist in the Ripple v SEC saga, Ripple’s co-founder, Chris Larsen, offered a stinging comment of SEC Chair Gary Gensler, saying that he’s the “worst public servant of all time.”
Larsen commented on Gensler in a recent CNBC interview 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 the Federal Trade Commission’s Lina Khan, he didn’t offer any specific answer on whether he agreed to remove Gensler from his position.
Ripple And SEC: A History Of Suing And Counter-Suing
Ripple’s beef with the SEC dates back to late 2020 when Larsen and Ripple’s CEO Brad Garlinghouse were named defendants. According to the SEC’s lawsuit, the duo was responsible for aiding and allowing the alleged Ripple’s securities law violations.
.@Ripple Chairman Chris Larsen calls Gary Gensler
The worst public servant in U.S. history 🤣 pic.twitter.com/1jQyG5FbJN
— 𝗕𝗮𝗻𝗸XRP (@BankXRP) October 26, 2024
In SEC v. Ripple, the agency alleged that Ripple sold an unregistered security offering. Ripple responded that XRP shouldn’t be treated as a security, using the SEC director’s previous comments to argue its case.
By October 2023, the company filed for the dismissal of the charges. Garlinghouse commented that the agency simply wanted to ruin him personally.
SEC Goes After Ripple (Again), 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 above board.
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 the Ripple execs.
After the SEC appeal, Ripple also filed a cross-appeal. The filing of Form C came a few days after the company executives stated that they would leave nothing on the table as part of its defense.
Gensler’s Tough Stance On Crypto
Many in the crypto industry initially saw a bright future ahead with Gensler at the helm. Gensler was tech-savvy, well-known in the academic circle, and even handled a blockchain course at the Massachusetts Institute of Technology (MIT).
However, Gensler pursued a tough stance on crypto, 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 crypto and Ripple have generated a lot of heated words.
Ripple’s Garlinghouse has already called out Gensler for preventing crypto’s progress and hit the agency for failing to stop the FTX collapse.
Featured image from CNBC, chart from TradingView
