Regulation
Ripple CLO calls for voting power in US elections
As the United States prepares for its upcoming presidential election, the intersection of politics and cryptocurrency is increasingly evident. Ripple’s Chief Legal Officer, Stuart Alderoty, highlighted the central role of the cryptocurrency community’s participation in this election process.
Alderoty urged the crypto community to participate in the November elections. In a June 7 post on .
This rallying cry has resonated positively within the crypto community, with many users expressing similar views and pledging to support candidates who advocate for industry-friendly policies.
This year, donations to crypto political action committees (PACs) reached $100 million, with significant contributions from industry executives. Companies like Coinbase have shown their commitment to regulatory clarity by donating to Super PACs to promote industry interests in upcoming elections.
Stuart Alderoty on X
Pressure for pro-crypto legislation has intensified in Congress, with lawmakers pushing for bipartisan efforts to bring clarity to the market. Notably, pro-Biden lawmaker Rep. Ro Khanna supported the Financial Innovation and Technology for the 21st Century Act (FIT21), calling on the White House to support the bill.
Khanna acknowledged concerns about the administration’s negative perception of blockchain and mentioned that he and Speaker Pelosi supported Patrick McHenry’s recent bill to clarify regulations, suggesting it would be beneficial that the White House also approves it.
Progress despite obstacles
Despite the obstacles faced, the crypto market has made significant progress this year, especially in the run-up to the US elections. In recent years, the industry has criticized the lack of regulatory clarity and the approach of the Securities and Exchange Commission (SEC).
Last month, lawmakers voted to rescind the SEC’s Staff Accounting Bulletin 121, although it had been vetoed by President Biden. Nonetheless, the House passed the FIT21 legislation as market participants urged the Senate to support the bill to establish clearer guidelines.
The FIT21 bill, if passed, would significantly reshape the regulatory frameworks governing crypto businesses and operations in the United States. However, the likelihood of a bill passing the Senate remains slim due to the complexity of the legislative process.
The Senate could choose to start from scratch on a market structure bill, which would require going through a full committee process, according to House Majority Whip Tom Emmer.
Even if the current version of the bill makes it to the Senate, it is expected that provisions or other aspects of the bill will be changed, requiring it to return to the House. Emmer expressed hope that the bill could pass during the lame duck session, once the political dust has settled.
Optimism and commitment from key legislators
Rep. Patrick McHenry, who chairs the Financial Services Committee, remains optimistic about the bill’s prospects, pointing to the substantial support FIT21 received in the House, with 279 votes in favor.
He stressed that the absence of a veto threat from the White House on FIT21 was encouraging, indicating a willingness to engage in political discussions.
McHenry acknowledged the complexity of the Senate, but stressed that the next step for the bill’s supporters would be to engage senators about the legislation. He believes that if two-thirds of the House can support the bill, the Senate should be able to get a similar level of support.
Sen. Ron Wyden, a Democrat who voted to rescind SEC Bulletin 121, stressed the need for a regulatory framework aligned with McHenry’s efforts.
Wyden stressed the importance of getting tough on scammers and fraudsters within the industry, recognizing McHenry’s initiative to establish a regulatory framework and increase emphasis on combating fraud and scammers.
As the political landscape evolves, the crypto community remains vigilant, recognizing the central role that regulatory clarity will play in the future of the sector. The upcoming elections will be a critical moment for the sector, with the potential to shape the regulatory environment for years to come.