Reassessing the U.S. Crypto Policy: Ripple Labs Chair Weighs In

In a recent dialogue, Chris Larsen, Ripple Labs chair and co-founder, remarked on the shifting sands of the U.S. crypto policies. He believes that despite setbacks, the U.S. legal system may provide a new avenue for the crypto industry to thrive.

The SEC vs. Crypto: A Perspective by Ripple Labs Chair Chris Larsen

While reflecting on Ripple Labs’ significant partial victory against the Securities and Exchange Commission (SEC) in July, Larsen shared his view that the regulator didn’t emerge triumphant on major matters crucial for the industry. He stated, “The U.S. faced setbacks in its crypto and blockchain approach. Now, the courts provide an opportunity, albeit not through regulators, to regain momentum in this sector.”

The conversation also touched upon the recent judgment favoring Grayscale. According to Larsen, the ruling allowed the transformation of its Bitcoin trust into a spot Bitcoin ETF, an uncommon reprimand for the SEC.

Larsen expressed concerns about the SEC Chair, Gary Gensler‘s, stance on crypto. He said, “The ruling reflects that Gensler acknowledges the ambiguity in crypto regulations. However, he seems to favor this vagueness, possibly to exercise greater regulatory authority.” Larsen added, “Such an approach contradicts American values. Clear guidelines from lawmakers are essential, not rulings from unelected officials with overreaching ambitions.”

Despite Larsen’s critique, it’s worth noting that Gensler has cautioned about the presence of “fraudsters” and “Ponzi schemes” in the crypto realm. He believes that the SEC’s securities regulations can offer a remedy.

San Francisco’s Diminishing Crypto Dominance

Larsen didn’t hold back when discussing the crypto policies under President Biden. He opined that these regulations have inadvertently dethroned San Francisco from its esteemed position as the “blockchain capital of the world.” He believes this is a stark contrast to Silicon Valley’s renowned tech prowess.

Larsen stated, “The policies have nudged the industry offshore, causing America to lose its stronghold.” He continued, “This move not only missed a golden opportunity but also impacted the city adversely.”

Shifting the spotlight to global centers of blockchain excellence, Larsen applauded London, Singapore, and Dubai. He emphasized that These cities have clear regulations that balance consumer protection and promoting innovation.

Larsen posed a thought-provoking question, “America has always been at the forefront of innovation. Why isn’t it leading the charge in blockchain now? America needs to reclaim its pioneering spirit.”

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