The president of Ripple Labs has criticized the U.S. Securities and Exchange Commission (SEC)’s approach to regulating the crypto sector, emphasizing that the regulator is on a “warpath” with the industry. She highlighted the inefficiency of the current approach, stating: “This whole dynamic of setting rules through enforcement … is really unproductive and not getting us anywhere.”
Ripple President Says SEC on 'Warpath' With Crypto Industry
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Ripple’s President on SEC Crypto Regulation
Ripple President Monica Long expressed criticism of the U.S. Securities and Exchange Commission (SEC)’s approach toward the cryptocurrency industry at the Money20/20 fintech conference in Amsterdam on Tuesday.
Discussing the initiatives of the Fairshake Super Political Action Committee (PAC) and the broader cryptocurrency industry’s support for crypto-friendly political candidates, Long shared with Reuters that the PAC operates on a bipartisan basis with a singular aim: to support candidates who advocate for the regulatory frameworks favored by the crypto sector. The Ripple president opined:
I think as an industry, especially for us companies based in the U.S., we’re frustrated with how far the U.S. is lagging on setting rules … This whole dynamic of setting rules through enforcement … is really unproductive and not getting us anywhere.
Ripple recently increased its contributions to Fairshake, adding $25 million more to its donations. Andreessen Horowitz (a16z) and Coinbase have also each made comparable donations of $25 million.
The crypto industry is actively seeking to influence U.S. legislation amid increasing regulatory scrutiny and political attention. The SEC has sued several top crypto firms, including Ripple, Coinbase, and Kraken, for securities law violations. The regulator seeks to impose $2 billion in fines on Ripple. Recently, Congress passed a resolution to overturn the SEC’s controversial Staff Accounting Bulletin 121 (SAB 121) which imposes rules that could hurt the crypto sector. However, President Joe Biden vetoed the resolution.
The Ripple executive stressed that the SEC seems to be on a “warpath” with the crypto industry in recent years, expressing a collective desire for a “change in tone.” However, when questioned about her confidence in the U.S. crypto industry’s influence, Long responded: “I’m optimistic, yes. I’m hopeful.”
Do you agree with Ripple President Monica Long about the SEC being on a warpath with the crypto industry? Let us know in the comments section below.
