The United States’ legal system is poised to play a pivotal role in revitalizing the cryptocurrency industry, which some believe has been hampered by the Biden administration’s crypto policy. Chris Larsen, chair and co-founder of Ripple Labs, expressed his views during an interview with Bloomberg on September 7. He argued that recent developments in the legal sphere indicate a path towards clarity for the crypto industry. Larsen emphasized that Ripple’s partial victory over the U.S. Securities and Exchange Commission (SEC) in July marked a significant turning point.
Ripple Labs chair confident of a positive future
In his opinion, the SEC lost on crucial aspects of the case that are pivotal for both the regulator and the broader crypto regulatory landscape. According to Larsen, the United States made missteps in crafting its crypto and blockchain policy. He sees the legal system as a means to rectify these shortcomings, even though he believes regulators should have provided the necessary clarity. Larsen also commented on a recent court judgment in favor of Grayscale, which received approval to convert its Bitcoin trust into a spot Bitcoin ETF.
He noted that this judgment delivered a rare admonishment of the SEC. The Ripple Chair believes that SEC Chair Gary Gensler’s approach to crypto regulation relies on the lack of clear rules, allowing him to make decisions arbitrarily. Larsen expressed dissatisfaction with this approach, asserting that clear rules should be established by legislatures rather than relying on unelected decision-makers. He criticized Gensler’s tactics as straying from the principles of democracy and due process.
Impact of the policy on the general crypto market
Gary Gensler has previously voiced concerns about fraudulent activities and Ponzi schemes within the crypto market. He has argued that the SEC’s securities laws are essential to clean up the industry. In another aspect of the interview, Larsen lamented the impact of Biden’s crypto policies on San Francisco’s prospects of becoming the “blockchain capital of the world.” Despite Silicon Valley’s reputation as a tech hub, Larsen believes that the Biden administration’s decisions have hindered the city’s progress in the blockchain space.
According to Larsen, San Francisco was once a leader in the blockchain industry, but it lost that position due to the administration’s decision to push the crypto industry offshore. He described this as a missed opportunity that has had a detrimental impact on the city. Larsen pointed to other global cities, including London, Singapore, and Dubai, as examples of places that have embraced clear rules to protect consumers and encourage innovation in the blockchain sector.
He questioned why the United States, known for its history of innovation, is not leading in this area. Chris Larsen, the chair and co-founder of Ripple Labs, believes that the U.S. legal system is now playing a crucial role in rectifying the perceived mistakes in the country’s crypto policy. Recent legal judgments and regulatory actions suggest a potential shift towards greater clarity and transparency for the crypto industry, albeit through the courts rather than regulators.A
