Regulation
Ripple CLO welcomes Senate vote to overturn SEC anti-crypto rule
The US Senate has voted to overturn a controversial rule proposed by the Securities and Exchange Commission (SEC), which could have posed a substantial threat to cryptocurrency custody services at regulated banking institutions. Stuart AlderotyRipple’s Chief Legal Officer (CLO), hailed the move, highlighting it as a major victory against what he called SEC Chairman Gary Gensler’s “unauthorized overreach.”
Ripple CLO applauds Senate decision on SAB 121
The reverse rule, known as SAB 121, would have required banks to include their clients’ cryptocurrency holdings in their balance sheets. This mandate has drawn widespread criticism from the banking sector and the cryptocurrency industry, arguing that it would significantly complicate the provision of custody services and negatively impact banks’ financial statements due to the volatile nature cryptocurrencies. Industry leaders, including Michael Saylor, co-founder of MicroStrategy, expressed approval of the Senate’s decision, emphasizing the need to protect the rights of cryptocurrency owners.
SEC Commissioner Hester Peirce, often nicknamed “Crypto Mom” for her positive attitude towards digital assets, has also criticized the agency’s inconsistent approach to regulating digital asset custody services. His criticism aligns with the broader industry perspective that sees the SEC’s latest move as part of a scattershot approach to cryptocurrency regulation that could stifle innovation and growth within the sector.
Bipartisan support increases for crypto regulation
Alderoty emphasized the importance of bipartisan support in legislative efforts affecting the cryptocurrency sector. The recent vote reflects a growing consensus among U.S. lawmakers on the need for a balanced approach to regulating digital assets. This unity is essential as the industry seeks to favorably influence future legislation, including the highly anticipated stablecoin bill.
The Senate’s decision to block the SEC rule is seen as a preventative measure against possible over-regulation that could deter innovation and harm the property rights of digital assets. This legislative action demonstrates a more measured and informed approach to the regulation of digital currencies, which Ripple’s Alderoty believes will support the growth and mainstream acceptance of cryptocurrencies.
Read also: Bybit does not have approval for digital asset services in France, warns the AMF
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Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write a lot on topics like blockchain, cryptocurrency, tokens, etc. for numerous publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.
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