Ripple Co- Founder Criticizes SEC’s Approach to Cryptocurrency Regulation
Chris Larsen, co- founder of Ripple, has expressed his dissatisfaction with how the United States Securities and Exchange Commission (SEC) is handling the digital currency 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 cryptocurrency regulation. He highlighted a federal judge’s ruling that the SEC must reconsider Grayscale’s app to transform the Grayscale Bitcoin (BTC) 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 likewise 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 cryptocurrency regulation and return to its tradition of celebrating innovation.
Chris Larsen’s criticism of the SEC’s approach to cryptocurrency regulation outlines the need for clear and transparent regulations in the digital currency industry. By relying on enforcement rather than establishing concrete laws, the SEC dangers stifling innovation and pushing it to other countries. To sustain its leadership position, the United States should provide a regulatory framework that fosters both consumer protection and innovation. This will allow entrepreneurs and enterprises to operate with confidence and contribute to the expansion of the industry. The SEC should focus on collaborating with Congress to establish clear regulations that encourage innovation and protect investors.
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