The US Senate has voted to repeal SAB 121, the SEC’s controversial rule that would significantly impact custody cryptocurrency services at banks. Ripple CLO Stuart Alderoty praised the Senate’s decision. He also criticized it as a victory against SEC overreach. The rule would force banks to list their customers’ cryptocurrency holdings on their balance sheets.
Ripple CLO applauds Senate’s SAB 121 decision
The US Senate has voted to repeal a controversial rule proposed by the Securities and Exchange Commission (SEC) that would pose a significant threat to custody services for cryptocurrencies in banking institutions. Ripple Chief Legal Officer (CLO) Stuart Alderoty praised this move, emphasizing that it was a great victory. Alderoty described the SEC’s move as “unauthorized overreach” by SEC Chairman Gary Gensler.
“Crypto Mom” criticized SEC’s inconsistent approach!
As a result of the vote, this rule, known as SAB 121, was canceled. The rule required banks to include their customers’ cryptocurrency assets on their balance sheets. This obligation received reactions from both the banking sector and the cryptocurrency industry. Experts said this rule would make custody services significantly more difficult. Additionally, experts suggested that cryptocurrencies would negatively affect banks’ financial statements due to their volatile nature. Industry leaders, including MicroStrategy co-founder Michael Saylor, underlined the need to protect the rights of cryptocurrency holders. In this context, they expressed their approval of the Senate’s decision.
SEC Commissioner Hester Peirce, often referred to as the “Crypto Mom” for her positive attitude towards digital assets, also criticized the agency’s inconsistent approach to regulating custody services for digital assets. His criticism is in line with a broader industry perspective that sees the SEC’s latest move as part of a disorganized approach to cryptocurrency regulation that could hinder innovation and growth in the sector.
Ripple CLO draws attention to bipartisan support!
Stuart Alderoty noted the importance of bipartisan support in legislative efforts affecting the cryptocurrency industry. The latest vote demonstrates the need for a balanced approach to regulating digital assets. In this vein, it reflects a growing consensus among US lawmakers. This unity is crucial as the industry looks to positively influence future legislation. Because the highly anticipated stablecoin bill is still on the table.
The Senate’s decision to block the SEC’s rule is seen as a preemptive measure against potential overregulation. There was criticism that this rule would discourage innovation and violate digital asset ownership rights. This legislative action signals a more measured and deliberate approach to digital currency regulation, which Ripple CLO Alderoty believes will support the growth and mainstream acceptance of cryptocurrencies.
Elizabeth Warren calls for a No vote on crypto bill!
U.S. Senator Elizabeth Warren has long criticized digital assets, associating them with terrorism and abuse. cryptokoin.comAs you follow, last month, he published a letter highlighting concerns about stablecoins. In his letter, he claimed that terrorist organizations and rogue nations were exploiting them. According to Elizabeth Warren, the lack of solid regulatory frameworks around digital assets is pretty bad. The lack of regulation leaves them open to abuse and fraud. Therefore, this puts the financial system in danger
Warren’s stance is based on her belief that tight oversight is required to prevent illegal activity. In this regard, the Senator called for a NO vote on the law. Thus, he showed his broader skepticism towards crypto and their integration into the mainstream financial sector. Without adequate safeguards, the financial system will be exposed to new vulnerabilities, the senator says. Therefore, he notes, this will potentially lead to significant financial instability.
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