Ripple CEO Brad Garlinghouse has proposed that President Joe Biden’s administration should demand the resignation of SEC Chair Gary Gensler as a way to demonstrate their commitment to the crypto industry. Garlinghouse expressed this suggestion in a recent post, responding to reports that Biden’s campaign sought advice from influential figures in the industry regarding the best approach to regulating cryptocurrencies.
Garlinghouse and many other crypto enthusiasts view Gensler as a political liability within the Biden administration due to his unfavorable stance on crypto. Rather than establishing clear regulations, Garlinghouse emphasized that Gensler has been focused on increasing the number of lawyers to prosecute the industry. This approach, according to the Ripple CEO and other stakeholders, is seen as regulation through enforcement.
Under Gensler’s leadership, the SEC has initiated numerous lawsuits against crypto companies, including Coinbase, Binance, Kraken, and LBRY. While Gensler inherited the Ripple lawsuit from the previous administration, many believe that his leadership significantly delayed its resolution. Last year, he hinted at the possibility of the SEC appealing the court’s decision, which gave Ripple a partial victory. This unfavorable regulatory approach has fueled the “Fire Gensler” campaign within the industry, with Garlinghouse echoing the sentiment and urging Biden’s administration to demand his resignation.
In contrast, President Biden has recently shown a more favorable attitude towards the crypto industry compared to the early years of his administration. This shift is evident in the approval of multiple Bitcoin and Ethereum spot-based exchange-traded funds (ETFs). Moreover, 71 Democrat representatives crossed party lines to vote in favor of a pro-crypto bill in the House of Representatives, indicating that Biden’s administration is now focused on establishing clear regulations for the industry.
Reports also suggest that the administration has been actively engaging with key industry players to seek guidance on creating favorable regulations for cryptocurrencies. These efforts mark a significant departure from Biden’s previous approach of keeping the industry at a distance. However, some enthusiasts view Biden’s recent pivot towards crypto as a strategic move to gain support from crypto investors ahead of the upcoming presidential election.
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