• Ripple’s Policy Chief recently took issue with the views expressed by Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC), on the compatibility of cryptocurrencies and securities.
• Susan Friedman, Ripple’s Policy Chief, argued that tailored regulations are needed to differentiate cryptocurrencies from securities rather than a one-size-fits-all approach.
• The disagreement between Ripple’s Policy Chief and Gensler lies in their divergent interpretations of the Howey Test, a legal framework used to determine whether a financial instrument qualifies as a security.
Ripple’s Policy Chief Clashes With SEC Chair Gary Gensler
Ripple’s Policy Chief recently entered into a debate with Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC) over the compatibility between cryptocurrencies and securities laws. Susan Friedman, Ripple’s Policy Chief argued that tailored regulations are needed to differentiate cryptocurrencies from securities rather than a one-size-fits-all approach proposed by Mr. Gensler.
Crypto Market Filled With Controversies
The ongoing legal battle between Ripple and SEC has made headlines as it could potentially set a precedent for the classification of other digital assets after the highly anticipated summary judgment. This debate has further raised controversies in the crypto market regarding crypto securities as both parties have different opinions about it.
Gary Geansler’s Views On Crypto
Gary Geansler expressed his opinion through Twitter stating that there is no incompatibility between crypto markets and securities laws; however he also highlighted SEC’s objective of aligning cryptocurrency space with existing regulations so investors can enjoy same protection as traditional markets do have.
Susan Friedmans Response To Mr Geanser
Susan Friedman countered Gary Geanslers opinion saying that unlike securities, cryptocurrencies typically don’t entail financial claim on issuer which can be settled in real time without any intermediaries thus necessitating tailored regulations instead of blanket statements assuming it is right choice for all situation..