Gensler’s SEC actions fueled crypto PAC Fairshake, Ripple CEO says

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As a seasoned analyst with over two decades of experience in the financial industry, I find Brad Garlinghouse’s comments about Fairshake and its role as a response to what he calls the “war on crypto” intriguing. It is not uncommon for major players in an industry to band together when faced with significant regulatory challenges, especially when those challenges could potentially stifle growth and innovation.

Ripple CEO Brad Garlinghouse noted Fairshake, the major political action committee that was funded by crypto bigwigs in the 2024 U.S election, was started to challenge Securities Exchange Commission’s Gary Gensler.

Brad Garlinghouse, CEO of Ripple Labs (a global payments solution utilizing blockchain technology), spoke with CBS News on December 6 about Political Action Committees and their impact on the U.S. Presidential election. He stated that if SEC chair Gary Gensler had not enforced strict regulations on cryptocurrencies, there might not be an independent expenditure-only committee named Fairshake, which is registered with the Federal Election Commission. His words were, “I’m unsure whether Fairshake would have come into being” or simply, “Fairshake possibly wouldn’t exist”.

The antidote to the ‘war on crypto’

In an interview with CBS News on December 6th, Garlinghouse stated that the Fairshake initiative was a collaborative effort to counter what he calls the “cryptocurrency war,” as the SEC intensified its regulatory actions during Gensler’s tenure. Notably, the agency had filed over 120 lawsuits against crypto companies like Ripple Labs, Uniswap, Terraform Labs, Coinbase, Binance, and Kraken, alleging violations of securities laws. Garlinghouse believes these enforcement actions fostered an unexpected sense of solidarity within the crypto sector, leading to the creation of the PAC (Political Action Committee).

If a different SEC chair had been appointed instead of Gary Gensler, it’s possible that Fairshake wouldn’t have been created. The reason these companies collaborated and took a stand is likely due to their reaction against a perceived hostility towards cryptocurrency. This is the viewpoint expressed by Brad Garlinghouse, CEO of Ripple Labs.

When questioned if the PAC acted with political intentions, the 53-year-old CEO clarified that the purpose of the PAC was not to sway politics but to establish a legal structure that encourages blockchain technology to expand and thrive within the U.S. This goal coincides with President-elect Donald Trump’s 2024 campaign agenda, which focuses on making the U.S. a world leader in cryptocurrency, as outlined during his speech in Nashville in July 2024.

Moreover, Garlinghouse disclosed that the company has incurred more than $150 million in legal costs, fighting for its stance. The legal dispute primarily revolved around whether XRP, Ripple’s native token, should be exempt from the regulatory obligations typically associated with securities.

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2024-12-09 08:20