Ripple Co- Founder Criticizes SECโs Approach to Cryptocurrency Regulation
Chris Larsen, co- founder of Ripple, has expressed his dissatisfaction with how the Unitedย States Securities and Exchange Commission (SEC) is handling the digitalย currency industry. In an interview with Bloomberg Technology, Larsen stated that recent legal defeats for the SEC indicate that theย Unitedย States is taking the wrong approach to cryptocurrency regulation. He highlighted a federal judgeโs ruling that the SEC must reconsider Grayscaleโs appย to transform the Grayscale Bitcoinย (BTC) Trust into an exchange-traded fund as an example.
Larsen criticized SEC Chairman Gary Genslerโs strategy of engaging in regulation by enforcement instead of establishing clear laws, describing it as power-hungry and misplaced. He likewise mentioned the SECโs lawsuit against Ripple, stating that the agencyโs actions are driving blockchain innovation to other countries with clearer regulations. Larsen believes that theย Unitedย States should lead in cryptocurrency regulation and return to its tradition of celebrating innovation.
Hot Take
Chris Larsenโs criticism of the SECโs approach to cryptocurrency regulation outlines the need for clear and transparent regulations in the digitalย currency industry. By relying on enforcement rather than establishing concrete laws, the SEC dangers stifling innovation and pushing it to other countries. Toย sustain its leadership position, theย Unitedย 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 theย 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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