The US Senate has voted to overturn a controversial rule proposed by the Securities and Exchange Commission (SEC), which could have posed a substantial threat to custodial services for cryptocurrencies in regulated banking institutions. Stuart Alderoty, the Chief Legal Officer (CLO) at Ripple, commended this move, highlighting it as a major victory against what he termed the “unauthorized overreach” of SEC Chair Gary Gensler.
Ripple CLO Applauds Senate’s Decision on SAB 121
The overturned rule, known as SAB 121, would have required banks to include their customers’ cryptocurrency holdings on their balance sheets. This mandate was met with widespread criticism from both the banking sector and the cryptocurrency industry, arguing that it would dramatically complicate the provision of custodial services and negatively impact banks’ financial statements due to the volatile nature of cryptocurrencies. Industry leaders, including MicroStrategy co-founder Michael Saylor, have voiced their approval of the Senate’s decision, underscoring the necessity of protecting the rights of cryptocurrency owners.
SEC Commissioner Hester Peirce, often referred to as “Crypto Mom” for her positive stance towards digital assets, also criticized the agency’s inconsistent approach to the regulation of custodial services for digital assets. Her critique aligns with the broader industry perspective that sees the SEC’s latest move as part of a scattergun approach to cryptocurrency regulation, which could stifle innovation and growth within the sector.
Bipartisan Support Grows for Crypto Regulation
Alderoty noted the importance of bipartisan support in legislative efforts affecting the cryptocurrency sector. The recent vote reflects a growing consensus among US lawmakers about the need for a balanced approach to regulating digital assets. This unity is pivotal as the industry seeks to influence future legislation favorably, including the much-anticipated stablecoin bill.
The Senate’s decision to block the SEC’s rule is seen as a preventive measure against potential overregulation that could deter innovation and infringe upon digital asset ownership rights. This legislative action signals a more measured and informed approach to digital currency regulation, one that Ripple’s Alderoty believes will support the growth and mainstream acceptance of cryptocurrencies.
Also Read: Bybit Lacks Approval for Digital Asset Services in France, AMF Warns
The post Ripple CLO Hails Senate Vote to Overturn SEC’s Anti-Crypto Rule appeared first on CoinGape.
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