According to U.Today, Ripple CEO Brad Garlinghouse has responded to the US House of Representatives' approval of the Financial Innovation and Technology for the 21st Century Act (FIT21). Garlinghouse took the opportunity to criticize US Securities and Exchange Commission (SEC) Chair Gary Gensler, stating that his previous comments about Gensler becoming a political liability have proven accurate. In December 2023, Garlinghouse had accused Gensler of damaging the integrity of the SEC.
The FIT21 Act, which aims to establish a legal framework for cryptocurrencies in the US, has been hailed as a significant victory for the cryptocurrency industry. The bill received notable bipartisan support, with 71 Democrats joining Republicans to vote in favor. However, Gensler has been a vocal opponent of the bill, arguing that many in the crypto industry do not adhere to the rules. He expressed concern that the bill could make it more difficult to protect investors, as he believes the cryptocurrency industry is reluctant to follow regulations.
The FIT21 Act could potentially limit the SEC's power by making the Commodity Futures Trading Commission (CFTC) the primary regulator of digital currencies. With the bill having passed the House with strong bipartisan support, it is yet to be seen whether it will receive approval from the Senate. Ripple's top lawyer, Stuart Alderoty, has recently emphasized the importance of bipartisan cooperation in the realm of cryptocurrencies.