Ripple’s Chief Legal Officer (CLO), Stuart Alderoty, has praised bipartisan efforts in the U.S. House of Representatives to curtail the Securities and Exchange Commission (SEC) ‘s overreach in cryptocurrency regulation.
On Wednesday, the House voted to overturn the SEC’s Staff Accounting Bulletin No. 121 (SAB 121), which mandates financial institutions to include the cryptocurrency holdings of their customers on their balance sheets. This decision, backed by both Democrats and Republicans, showcases the growing concern over the SEC’s current approach to cryptocurrency.
Ripple CLO Cheers Congressional Pushback on SEC
Critics argue that SAB 121 would severely hinder banks’ ability to custody cryptocurrencies, pointing to the impracticality of such regulations. The guidance has faced criticism not only from industry stakeholders but also from within the SEC itself, with Commissioner Hester Peirce criticizing the agency’s regulatory tactics as “scattershot” and “inefficient.” 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 opposition to SAB 121. This collaboration reflects a rare consensus in Congress, where the need to foster cryptocurrency innovation seems to resonate across party lines. Alderoty took to the X social media network to express his approval of the decision, emphasizing the importance of continued engagement from Congress in refining crypto regulations.
This development comes at a crucial time as the Senate, currently under Democratic control, prepares to consider the resolution. The outcome in the Senate will be pivotal in determining the future of cryptocurrency regulation in the U.S. Alderoty has also voiced his support for the upcoming stablecoin bill, acknowledging the progress but recognizing the long road ahead in achieving balanced crypto regulations.
Charles Hoskinson Claims Regulations Threaten Crypto Globally
The crypto industry’s reaction to recent regulatory developments has been vocally critical, especially concerning the broader approach of the Biden administration toward cryptocurrency regulation. Cardano founder Charles Hoskinson has openly criticized the administration, claiming an intent to “kill” the industry. He argues that stringent regulations are detrimental not just domestically but globally, as the industry plays a significant 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 businesses with a combined market cap of $380 billion. This example illustrates the potential economic benefits of a thriving cryptocurrency sector bolstered by sensible regulation that supports innovation while ensuring market stability and investor protection.
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