US Congressman Warren Davidson has renewed his calls to fire SEC Chairman Gary Gensler after the regulator lost a court case against Ripple. Davidson accused Gensler of abusing his power and harming the crypto industry with his unclear and hostile policies.
The SEC has been suing Ripple since December 2020, alleging that the company sold unregistered securities in the form of XRP tokens. Ripple has denied the charges and argued that XRP is a currency, not a security. The case has been closely watched by the crypto community, as it could have significant implications for the legal status and regulation of other cryptocurrencies.
On September 28, 2021, US District Judge Sarah Netburn ruled in favor of Ripple and denied the SEC’s request to access Ripple’s legal communications. The SEC had claimed that these communications would show that Ripple knew that XRP was security and violated securities laws. However, Judge Netburn found that the SEC’s request was irrelevant, improper, and intrusive and that Ripple’s legal communications were protected by attorney-client privilege.
Davidson, who is a vocal supporter of the crypto industry and a co-sponsor of the Token Taxonomy Act, a bill that aims to exempt certain digital tokens from securities laws, took to Twitter to celebrate Ripple’s victory and criticize Gensler. He tweeted:
“Another win for @Ripple! @SECGov continues to lose on its overreaching claims. Time to fire @GaryGensler. He is abusing his power & creating ridiculous uncertainty on #blockchain tech while picking winners & losers instead of fostering innovation in America.”
Davidson is not the only one who has called for Gensler’s removal. Earlier this month, former SEC Commissioner Joseph Grundfest also suggested that Gensler should resign or be fired for his controversial approach to crypto regulation. Grundfest accused Gensler of ignoring the rule of law and creating confusion and uncertainty in the crypto market.
Gensler, who took office in April 2021, has been pushing for more regulation and oversight of the crypto industry, claiming that most cryptocurrencies are securities and should comply with federal securities laws. He has also called for more congressional authority and resources for the SEC to regulate crypto exchanges, stablecoins, lending platforms, and other crypto-related activities. He has argued that his goal is to protect investors and consumers from fraud, manipulation, and other risks associated with crypto assets.
However, many in the crypto industry and community have disagreed with Gensler’s views and actions, saying that he is overstepping his boundaries and stifling innovation and competition in the crypto space. They have also complained that the SEC’s guidance on crypto regulation is vague, inconsistent, and retroactive and that the SEC should provide more clarity and certainty for crypto businesses and users.
The SEC’s case against Ripple is still ongoing, and both parties are expected to face each other in court again in October 2021. The outcome of the case could have a major impact on the future of crypto regulation in the US and beyond.