Ripple CEO Criticizes SEC’s Crenshaw Over Anti-Crypto Stance

As an analyst with a background in finance and experience following the crypto industry, I am deeply concerned about Caroline Crenshaw’s potential reconfirmation as a SEC commissioner. Her anti-crypto stance and disregard for legal standards set a worrying precedent for the future of digital assets and financial innovation.

Brad Garlinghouse, CEO of Ripple, has expressed fierce disagreement with SEC Commissioner Caroline Crenshaw over her critical stance on crypto assets. Katie Biber, Paradigm’s chief legal officer, initiated this debate by bringing attention to Crenshaw’s anti-crypto sentiments in a social media thread titled “Why is SEC Commissioner Caroline Crenshaw being considered for reappointment without any opposition from the Senate?”

Concerns about Crenshaw’s Anti-Crypto Stance

In her social media entries, Biber alleged that Crenshaw showed disregard for legal structures and sought to obstruct the advancement of the cryptocurrency sector. A notable instance she brought up was Crenshaw’s stance against the authorization of Bitcoin spot ETFs in the US market.

I started my tenure with the SEC in August 2020 following a unanimous confirmation by the Senate. During our deliberations on Bitcoin ETFs early this year, I took a firm position on the matter.

The SEC Commissioner and Jaime Lizárraga voiced their opposition to the approval of Bitcoin ETFs, expressing worries over potential fraudulent activities. They cast their votes in disagreement, stressing that the absence of adequate regulatory supervision could expose investors to substantial risks.

At the time, Crenshaw described the crypto market as a “Petri dish of fraudulent conduct.”

Garlinghouse urged legislators to take definite steps in opposing Crenshaw’s potential reappointment as SEC Commissioner, following Biber’s posts. If no suitable replacement contender emerges, Crenshaw may be granted another term in office this week.

During the crypto discussion led by Congressman Ro Khanna, Garlinghouse similarly brought up the same issue as Biber had earlier in the week.

At the crypto roundtable this morning, I strongly emphasized this particular issue. Here’s hoping that we’ll witness more than just empty promises in response.

— Brad Garlinghouse (@bgarlinghouse) July 10, 2024

 Crenshaw’s Disregard for Legal Standards

In an attempt to prevent Crenshaw’s confirmation, Biber pointed to another instance where she appeared disregardful of legal proceedings. This occurred during the Grayscale Investments versus SEC case.

The DC Circuit Court of Appeals unanimously decided that the regulatory body lacked a clear justification for rejecting Grayscale’s proposal to launch a bitcoin spot ETF, alleging an unwarranted and unjust action in contravention of the Administrative Procedure Act (APA).

After the court’s verdict, SEC Chairman Gary Gensler conceded and gave the green light to Grayscale’s Bitcoin spot ETF application. However, Crenshaw and Biber expressed opposition, with the latter criticizing Gensler for contorting herself excessively to disregard the Court’s unequivocal instructions.

Political Motivations behind Reconfirmation

Biber expressed the possibility that Crenshaw’s potential confirmation was driven by political considerations. He put it this way: “Crenshaw’s reappointment could be influenced by political reasons.”

This week, Crenshaw’s confirmation hearing may take place once more. However, it is essential to consider some profound inquiries: Is her loyalty towards Vice President Elizabeth Warren more significant than adhering to the rule of law? Does President Biden fully comprehend that he has renominated her again?

As a researcher, I’ve discovered that Gensler might be pursuing a strategy to secure a Democratic majority on the Securities and Exchange Commission (SEC) board by 2025 through this reconfirmation process.

Biber expresses concern that the Commissioners are likely to advocate for increased or unyielding regulatory control over cryptocurrencies and associated financial advancements.

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2024-07-11 13:52