Ripple’s chief legal officer says the U.S. needs to ”stop elevating politics over sound policy.” Noting that countries and regions outside of the U.S., such as Singapore, the U.K., the EU, and Japan, welcome crypto businesses, he emphasized: “I think we need a rational regulatory framework.” Moreover, he stressed that certain regulatory agencies in the U.S. are fighting over the control of the technology rather than focusing on the right policy outcome.
‘We Need a Rational Regulatory Framework’
Ripple’s chief legal officer, Stuart Alderoty, discussed U.S. cryptocurrency regulation on social media and in an interview with CNBC this week. He wrote on X Thursday:
We need to stop elevating politics over sound policy in the US, and look to the way that Singapore, UK, EU, & Dubai have set clear frameworks and licenses. No wonder crypto innovation is thriving in these regions.
Alderoty explained on CNBC that countries and regions outside of the U.S. have “rational” crypto regulations, pointing to Singapore, the U.K., the EU, Dubai, Brazil, Australia, and Japan as examples. He stressed that these nations have “rational regulatory frameworks that are not working to push out this innovation but are looking to say: ‘Hey, look if you want to come into our country and develop this innovation, you can do it, so long as you satisfy our rigorous regulatory regime.'”
In contrast, the Ripple chief legal officer stated that “we have lost our way” in the U.S. “because we have politics and power being elevated over sound policy.” He explained that the U.S. has certain agencies fighting over the control of the technology from a regulatory perspective, rather than focusing on the right policy outcome.
Alderoty then highlighted the legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) over XRP, in which Ripple has scored a partial victory against the securities regulator. Earlier this month, District Judge Analisa Torres rejected the SEC’s bid to appeal her ruling regarding XRP. The Ripple legal chief stressed:
Even though he won it in court, we don’t think that this issue should be fought token by token, case by case, judge by judge. I think we need a rational regulatory framework.
The SEC, under Chair Gary Gensler, has been heavily criticized for taking a litigation-heavy approach to regulating the crypto industry. Gensler has repeatedly stated that crypto is rife with fraud, abuse, and misconduct. Several U.S. lawmakers have voiced concerns regarding how the SEC is overseeing the crypto sector, including Congressman Warren Davidson who recently introduced a bill to remove the role of the SEC chairman.
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