- Ripple’s chief legal officer, Stuart Alderoty, applauds the US Senate’s decision to nullify an anti-crypto SEC rule that threatened regulatory custodial services.
- The controversial SAB 121 guidance would have required banks to register their customers’ cryptocurrency holdings on their balance sheets, a move that faced significant opposition from the industry.
- Alderoty emphasizes the importance of bipartisan cooperation in cryptocurrency-related legislation and notes the ongoing efforts to pass a stablecoin bill.
US Senate nullifies anti-crypto SEC rule, Ripple’s chief legal officer, Stuart Alderoty, lauds the move. The decision marks a significant development for the cryptocurrency industry and regulatory custodial services.
Senate Votes Against Controversial SEC Rule
The US Senate recently voted to nullify the Securities and Exchange Commission’s (SEC) controversial SAB 121 guidance. This rule would have compelled regulated banking institutions to register their customers’ cryptocurrency holdings on their balance sheets. The industry strongly opposed this rule, arguing that it would significantly hinder banks’ ability to offer custodial services and could potentially infringe on the rights of cryptocurrency owners.
Industry and Banks United Against SAB 121
The cryptocurrency industry and banks joined forces to repeal the SEC’s SAB 121 rule. Banks were particularly against the rule as it would have negatively impacted their balance sheets due to the inherent volatility of cryptocurrencies. Despite the opposition, SEC Chair Gary Gensler defended the rule, noting that the previous 120 SABs were not challenged.
Ripple’s Response to the Senate’s Decision
Stuart Alderoty, Ripple’s chief legal officer, has been vocal about the “unauthorized overreach” of the SEC and has praised the Senate’s decision. Alderoty has been closely monitoring the developments on Capitol Hill and has repeatedly emphasized the importance of bipartisan cooperation in cryptocurrency-related legislation. He has also acknowledged the ongoing efforts by US lawmakers to pass a much-anticipated stablecoin bill, a significant development for Ripple as it prepares to launch its own stablecoin.
Conclusion
The Senate’s decision to nullify the SEC’s SAB 121 rule marks a significant development for the cryptocurrency industry. It highlights the importance of bipartisan cooperation in shaping cryptocurrency-related legislation and sets a precedent for future regulatory decisions. As the industry continues to evolve, the need for clear, fair, and supportive legislation becomes increasingly crucial.
