Ripple’s Chris Larsen Criticizes SEC Chair Gensler as “Worst Public Servant

• Ripple’s Chris Larsen calls SEC Chair Gary Gensler the “worst public servant,” citing overly aggressive crypto regulations.
• Charges against Ripple executives were recently dismissed, yet the SEC has since appealed, reigniting the legal dispute.
• Gensler’s “regulation by enforcement” strategy has attracted criticism, affecting companies like Ripple, Coinbase, and Binance.

Ripple co-founder Chris Larsen recently made a striking remark regarding U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler in an interview with CNBC. Larsen labeled Gensler as “the worst public servant” the nation has ever had, a claim reflecting the increasing tension between the SEC and Ripple in their ongoing legal battle. This unprecedented accusation comes as the SEC’s high-profile lawsuit against Ripple, originally filed in late 2020, remains unresolved.

Dismissal of Charges Against Ripple Executives

The lawsuit, which also named Ripple CEO Brad Garlinghouse, accused both Larsen and Garlinghouse of aiding securities law violations through their work with Ripple. In a pivotal development in October 2023, the SEC filed to dismiss these charges against the two executives, a move that initially seemed to ease the strain between Ripple and the regulatory body. However, Garlinghouse expressed that the agency’s initial aim had been to “personally ruin” both him and Larsen through these allegations, intensifying the animosity between the parties.

SEC Files Notice of Appeal Following Dismissal

Despite the dismissal, the SEC promptly filed a notice of appeal earlier this month, indicating its intent to pursue legal action against Ripple’s top executives once again. This action suggests that the SEC remains committed to its original position, despite the court’s prior dismissal. The SEC’s appeal underscores its ongoing determination to enforce what many view as a rigid regulatory stance on the cryptocurrency sector, a stance that has also affected other major players in the industry, including Coinbase and Binance.

Many initially welcomed Gensler’s appointment as SEC Chair due to his background in blockchain, including a teaching role at MIT. However, his “regulation by enforcement” strategy has since sparked backlash. Rather than proposing clear regulatory guidelines for cryptocurrency companies, Gensler has prioritized enforcement actions against prominent crypto firms. Ripple is only one of many high-profile cases, with companies like Coinbase and Binance facing similar scrutiny.

Crypto Community’s Growing Discontent with the SEC

Gensler’s stance has faced significant opposition from within the cryptocurrency community, with Garlinghouse previously labeling Gensler a “Luddite” for resisting crypto innovation within the U.S. Moreover, Ripple’s executives have also faulted the SEC’s leadership for failing to prevent issues like the FTX collapse, which damaged industry trust and led to substantial financial losses.