Regulation
Ripple CLO hails Senate vote to overturn SEC anti-cryptocurrency 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) praised this move, highlighting it as a major victory against what he called SEC Chairman Gary Gensler’s “unauthorized breach.”
Ripple CLO applauds Senate decision on SAB 121
The overturned rule, cd SAT 121, would have required banks to include their customers’ cryptocurrency holdings on their balance sheets. This mandate has been met with widespread criticism from both the banking sector and the cryptocurrency industry, arguing that it would significantly complicate the provision of custody services and have a negative impact on banks’ financial statements due to the volatile nature of cryptocurrencies. Industry leaders, including MicroStrategy co-founder Michael Saylor, expressed their approval of the Senate’s decision, underscoring the need to protect the rights of cryptocurrency owners.
SEC Commissioner Hester Peirce, often referred to as the “Crypto Mom” for her positive stance on digital assets, also criticized the agency’s inconsistent approach to regulating digital asset custody services. Her criticism is in line with the broader industry perspective that sees the SEC’s latest move as part of a haphazard approach to cryptocurrency regulation, which could stifle innovation and growth within the industry.
Bipartisan support for cryptocurrency regulation is growing
Alderoty highlighted the importance of bipartisan support in legislative efforts affecting the cryptocurrency industry. The recent vote reflects a growing consensus among US lawmakers on the need for a balanced approach to regulating digital assets. This unity is critical as the industry seeks to favorably influence future legislation, including long-awaited legislation stablecoin invoice.
The Senate’s decision to block the SEC’s governance is seen as a preventative measure against potential overregulation that could discourage innovation and infringe on property rights of digital assets. This legislative action signals a more measured and informed approach to digital currency regulation, which Ripple’s Alderoty believes will support the growth and mainstream acceptance of cryptocurrencies.
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Maxwell is a cryptoeconomic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens and more for many publications. My goal is to spread awareness of this revolutionary technology and its implications for economic freedom and social good.
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