Regulation
Ripple CLO seeks voting power in US elections
As the United States prepares for the upcoming presidential election, the intersection of politics and cryptocurrency is increasingly evident. Ripple Chief Legal Officer Stuart Alderoty highlighted the key role of the cryptocurrency community’s participation in this election process.
Alderoty has openly urged the crypto community to participate in the November elections. In a June 7 post on X (formerly Twitter), she pointed out that without the support of crypto voters, other outreach efforts, such as calls, letters and emails to lawmakers, would be dismissed as mere noise.
This rallying cry has had a positive resonance within the crypto community, with many users expressing similar views and pledging to support candidates who support favorable policies towards the sector.
This year, donations to cryptocurrency political action committees (PACs) have reached $100 million, with significant contributions from industry executives. Companies like Coinbase have demonstrated their commitment to regulatory clarity by donating to Super PACs to advance industry interests in upcoming elections.
Stuart Alderoty on X
The push for pro-cryptocurrency legislation has intensified in Congress, with lawmakers fighting for bipartisan efforts to bring clarity to the market. Notably, pro-Biden lawmaker Rep. Ro Khanna has supported the FIT21 (Financial Innovation and Technology for the 21st Century Act) legislation, calling on the White House to support the bill.
Khanna acknowledged concerns about the administration’s negative perception of blockchain and said that both he and Speaker Pelosi supported Patrick McHenry’s recent bill aimed at providing regulatory clarity, suggesting it would be beneficial for the White House to pass it .
Progress despite obstacles
Despite the obstacles faced, the cryptocurrency market has made great strides this year, particularly as the US election approaches. 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 overturn the SEC’s Staff Accounting Bulletin 121, even though it was vetoed by President Biden. Nonetheless, the House passed the FIT21 legislation, with market participants urging the Senate to support the bill to establish clearer guidelines.
The FIT21 bill, if adopted, would significantly reshape the regulatory framework governing cryptocurrency-related businesses and activities in the United States. However, the likelihood of a bill passing the Senate remains slim due to the complexity of the legislative process.
According to House Majority Whip Tom Emmer, the Senate could choose to start a market structure bill from scratch, which would require passage through a full committee process.
Even if the current version of the bill reaches the Senate floor, it is expected that provisions or other aspects of the bill will be changed, necessitating its return to the House. Emmer expressed hope that the bill could pass during the lame duck session, once the political dust settles.
Optimism and commitment from key legislators
Rep. Patrick McHenry, who chairs the Financial Services Committee, remains optimistic about the bill’s prospects, noting the substantial support FIT21 received in the House, with 279 votes in favor.
He stressed the absence of a veto threat from the White House 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 will be to engage senators on 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 overturn SEC Bulletin 121, emphasized the need for a regulatory framework, in line with McHenry’s efforts.
Wyden highlighted the importance of being tough on fraudsters and fraudsters within the industry, acknowledging McHenry’s initiative to establish a regulatory framework and focus more on combating fraud and scam artists.
As the political landscape evolves, the crypto community remains vigilant, recognizing the critical role that regulatory clarity will play in the future of the industry. The upcoming election will represent a critical moment for the industry, with the potential to shape the regulatory environment for years to come.