Ripple CEO Highlights SEC’s Role in Inspiring Crypto PAC Fairshake

Brad Garlinghouse, CEO of Ripple Labs, has attributed the formation of the crypto-focused political action committee (PAC) Fairshake to what he describes as an aggressive regulatory stance by the Securities and Exchange Commission (SEC) under its chair, Gary Gensler. Speaking to CBS News on December 6, Garlinghouse suggested that Fairshake might not have been established if not for the SEC’s contentious actions.

A Response to the ‘War on Crypto’

Fairshake, a federal-independent expenditure-only committee, was created as a collective response from the cryptocurrency industry to counter what many perceive as a “war on crypto.” During Gensler’s tenure, the SEC has intensified its regulatory enforcement, filing over 120 lawsuits against major crypto entities such as Ripple Labs, Uniswap, Terraform Labs, Coinbase, Binance, and Kraken. These lawsuits often cite alleged violations of securities laws.

Garlinghouse emphasized the unity within the crypto sector catalyzed by these enforcement actions. “If there had been a different SEC chair than Gary Gensler, I’m not sure Fairshake would exist,” he stated. “Why did these companies come together and organize and say, ‘This matters’? It’s a reaction to a war on crypto.”

Not Politically Charged, But Mission-Driven

Addressing whether Fairshake has a political agenda, Garlinghouse clarified that the PAC’s mission is not about political influence but about advocating for a balanced legal framework that allows blockchain technology to flourish in the United States. This mission aligns with President-elect Donald Trump’s 2024 campaign manifesto, which pledged to make the U.S. a global leader in cryptocurrency. Trump outlined this vision during a speech in Nashville in July 2024.

Ripple’s Legal Battle with the SEC

Ripple Labs has been at the forefront of the SEC’s enforcement actions, with its native token, XRP, at the center of a heated legal debate. The SEC’s lawsuit against Ripple argues that XRP should be classified as a security, requiring it to adhere to registration and disclosure regulations. Ripple, however, has staunchly defended its position, spending over $150 million in legal expenses.

The Path Ahead

The rise of Fairshake underscores a significant shift in the crypto industry’s approach to regulatory challenges. By banding together, companies aim to create a unified voice advocating for policies that support innovation while ensuring regulatory clarity. As the U.S. moves toward greater involvement in the global cryptocurrency landscape, the actions of PACs like Fairshake could play a pivotal role in shaping the industry’s future.