The war of words between key people at Ripple Labs and the Securities and Exchange Commission (SEC) is still ongoing.
In the latest development in the Ripple vs. SEC saga, Ripple co-founder Chris Larsen made a scathing comment to SEC Chairman Gary Gensler, saying he is the “worst public servant ever.”
Larsen commented on Gensler in a recent CNBC interview after highlighting the country’s failed cryptocurrency policy and his decision to support Kamala Harris’ campaign.
While Larsen shared his distrust of Gensler and even the FTC’s Lena Khan, he did not offer any specific answer on whether he agreed to remove Gensler from his position.
Ripple and the SEC: A History of Suing and Counter-Suing
The dispute between Ripple and the SEC dates back to late 2020 when Larsen and Ripple CEO Brad Garlinghouse were named as defendants. According to the SEC’s lawsuit, the duo was responsible for aiding and permitting Ripple’s alleged securities law violations.
.@ripple Chairman Chris Larsen calls Gary Gensler
The worst government employee in the history of the United States 🤣 pic.twitter.com/1jQyG5FbJN
— 𝗕𝗮𝗽𝗲XRP (@BankXRP) October 26, 2024
In the SEC case against Ripple, the agency alleged that Ripple sold an unregistered security offering. Ripple responded that XRP should not be treated as a security, using the SEC director’s previous comments to make its case.
By October 2023, the company filed a motion to dismiss the charges. Garlinghouse commented that the agency simply wanted to destroy him personally.
The SEC goes after Ripple (again), then resorts to Ripple’s counter-appeal
In a July 2023 ruling, a judge ruled that although Ripple’s sale of its token to institutional buyers violates existing securities laws, its programmatic sales to retail exchanges are public.
Nearly two months after the judge’s ruling, the agency immediately filed an appeal. In its Form C filing, the agency shared that it will continue to pursue Ripple executives.
Following the SEC appeal, Ripple also filed a counter-appeal. The Form C filing came just days after company executives said they wouldn’t leave anything on the table as part of their defense.
Gensler’s tough stance on cryptocurrencies
Many in the cryptocurrency industry initially saw a bright future ahead for Gensler at the helm of the company. Gensler was tech-savvy, well-known in the academic circle, and even took a blockchain course at the Massachusetts Institute of Technology (MIT).
However, Gensler has taken a tough stance on cryptocurrencies, starting with the agency’s campaign against Binance and Coinbase.
In recent years, the SEC’s campaign against Ripple has captured industry attention. Gensler’s aggressive policies on cryptocurrencies and Ripple have generated a lot of hot words.
Ripple’s Garlinghouse has already called out Gensler for blocking the cryptocurrency’s progress and hit the agency for failing to stop FTX’s collapse.
Featured image from CNBC, chart from TradingView