Regulation
Ripple CLO welcomes bipartisan reaction to SEC anti-crypto rules
Legal Director of Ripple (CLO), Stuart Alderotywelcomed bipartisan efforts by the U.S. House of Representatives to reduce the Securities and Exchange Commission’s (SEC) overreach in regulating cryptocurrencies.
Wednesday, the The House voted to rescind SEC Staff Accounting Bulletin No. 121 (SAB 121), which requires financial institutions to include their customers’ cryptocurrency holdings on their balance sheets. The move, supported by both Democrats and Republicans, highlights growing concern over the SEC’s current approach to cryptocurrency.
Ripple CLO welcomes Congressional reaction to SEC
Critics claim that SAB 121 this would severely hamper the ability of banks to hold cryptocurrencies, highlighting the impracticality of such regulations. The guidance has faced criticism not only from industry stakeholders, but also from the SEC itself, Commissioner Hester Peirce criticizing the agency’s regulatory tactics as “scattered” and “ineffective.” Alderoty’s comments highlight the unusual unity between major cryptocurrency players and banking groups against the SEC’s stance.
The House’s decision to reject the SEC’s guidance was marked by significant bipartisan support, with 21 Democrats joining Republicans in opposing SAB 121. This collaboration reflects a rare consensus in Congress, where the need to favor he cryptocurrency innovation appears to be resonating across party lines. Alderoty took to social media network
The development comes at a crucial time as the Senate, currently under Democratic control, prepares to consider the resolution. The Senate outcome will be crucial in determining the future of cryptocurrency regulation in the United States. Alderoty also expressed support for the upcoming stablecoin bill, acknowledging the progress but acknowledging the long road ahead to achieve balanced regulation of cryptocurrencies.
Charles Hoskinson Says Regulations Threaten Crypto Globally
The crypto industry’s reaction to recent regulatory developments has been sharply critical, particularly regarding the Biden administration’s broader approach to regulating cryptocurrencies. Founder of Cardano Charles Hoskinson has openly criticized the administration, claiming its intention to “kill” the industry. He says strict regulations are detrimental not only nationally but also globally, as the industry plays an important role in the economic growth of several countries, including Switzerland.
Hoskinson highlighted Ethereum’s impact in Switzerland, where its development has contributed to the emergence of 1,290 companies with a combined market capitalization of $380 billion. This example illustrates the potential economic benefits of a thriving cryptocurrency sector, supported by sensible regulation that supports innovation while ensuring market stability and investor protection.
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