Ripple CLO criticizes US for weak cryptocurrency regulation

Stuart Alderoty, Chief Legal Officer (CLO) of renowned blockchain firm Ripple, has criticized the US for its inaction in establishing clear regulations for cryptocurrencies. The development underscores the continued calls for the economic superpower to create a stable regulatory framework for digital assets amid consistent enforcement actions by the US Securities and Exchange Commission (SEC).

US has failed to properly regulate cryptocurrencies, says Alderoty

In an X post published on Friday, Stuart Alderoty shared his experiences from the recent Point Zero Forum in Zurich, Switzerland, the theme of which was “Navigating the Maze: Implementing Global Digital Asset Regulation.” The Ripple CEO said that at the conference, he emphasized the importance of establishing “good” cryptocurrency regulations, while criticizing the United States for its shortcomings in this area.

Alderoty posted:

Thanks @PointZeroForum for organizing this great panel in Zurich last week. As I explained: Good regulation, when consistently applied, leads to predictable results. Unfortunately, the U.S. fails this test compared to its global peers.

Interestingly, Alderoty’s comments on U.S. cryptocurrency regulation only reinforce the general sentiment among American cryptocurrency users and institutions that they want clear regulations that take into account the specifics of the digital asset industry. These subpoenas are specifically prompted by the SEC’s ongoing crackdown on several cryptocurrency entities for “offering unregistered securities” among other offenses. Interestingly, the securities regulator is currently in court with major cryptocurrency entities including Ripple, Binance, and Coinbase.

With the US presidential election fast approaching, dissatisfaction with proper cryptocurrency regulation has also become a major topic of discussion. It is believed that the US is lagging behind the pace of cryptocurrency adoption and may need a change of leadership. It is worth noting that Republican presidential candidate Donald Trump has already expressed support for the virtual asset ecosystem, and in his opinion, the United States should be the leader in this industry.

For context, the European Union (EU) is preparing to pass the first phase of its Markets in Crypto Assets (MiCA) regulations, which are set to come into force. Meanwhile, the UK is set to publish its proposed digital regulations in July this year.

US House of Representatives Prepares to Override Biden’s Veto on SAB 121

In other news, the U.S. House of Representatives is preparing to override President Joe Biden’s veto of the SEC’s Staff Accounting Bulletin (SAB) 121, a highly controversial policy requiring financial institutions to document digital assets on their balance sheets. The law is widely seen as anti-crypto, and its repeal was previously voted down by the U.S. House of Representatives by a vote of 228-182 and the Senate by a vote of 60-38. However, that resolution was met with rejection by Biden.

To effectively eliminate this guidance requirement, some lawmakers in both parties are now preparing to override the president’s veto if the repeal order must receive a two-thirds vote of both U.S. legislatures. According to House Majority Leader Steven Scalise, the vetoed resolution could be revisited next week, on Monday. If it succeeds, it will trigger another vote.

Featured image from Yahoo Finance, chart from Tradingview