Ripple Co-Founder Criticizes SEC’s Approach to Crypto Regulation
Chris Larsen, co-founder of Ripple, has expressed his dissatisfaction with how the U.S. Securities and Exchange Commission (SEC) is handling the cryptocurrency industry. In an interview with Bloomberg Technology, Larsen stated that recent legal defeats for the SEC indicate that the United States is taking the wrong approach to crypto regulation. He highlighted a federal judge’s ruling that the SEC must reconsider Grayscale’s application to convert the Grayscale Bitcoin Trust into an exchange-traded fund as an example.
Larsen criticized SEC Chairman Gary Gensler’s strategy of engaging in regulation by enforcement instead of establishing clear laws, describing it as power-hungry and misplaced. He also mentioned the SEC’s lawsuit against Ripple, stating that the agency’s actions are driving blockchain innovation to other countries with clearer regulations. Larsen believes that the United States should lead in crypto regulation and return to its tradition of celebrating innovation.
Hot Take
Chris Larsen’s criticism of the SEC’s approach to crypto regulation highlights the need for clear and transparent rules in the cryptocurrency industry. By relying on enforcement rather than establishing concrete laws, the SEC risks stifling innovation and pushing it to other countries. To maintain its leadership position, the United States should provide a regulatory framework that fosters both consumer protection and innovation. This will allow entrepreneurs and businesses to operate with confidence and contribute to the growth of the industry. The SEC should focus on collaborating with Congress to establish clear regulations that promote innovation and protect investors.
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