By Alicia Maher
Blockchain firm Ripple has shared its desire to work with regulators and Congress to effect smart regulation for digital assets. Speaking of the collaboration is Susan Friedman, Public Policy Head, who explains that working with Congress and regulatory bodies will drive innovation and safeguard assets better.
Friedman is enthusiastic about the collaboration and believes that the crypto space will function better with the aforementioned entity and Congress in partnership with them. She added that many folks in the sector are looking forward to working with Congress and regulatory proactively.
The Crypto Sector Isn’t the Wild West
Friedman also noted that the nascent sector isn’t “the wild west,” a derogatory name SEC head Gary Gensler labeled the crypto sector when he appeared before the United States Senate Last September. Gensler was discussing providing greater regulatory oversight for the crypto industry.
Regulating the crypto industry has topped the agenda of the SEC since Gary Gensler took charge of the financial regulator. The body, alongside the CFTC, has been working towards drafting regulations that will curb criminal activities, protect customers, and drive innovation. However, the autocratic approach implemented by the SEC seems to attract criticism rather than do the job.
Last week, the first draft for stablecoin regulations was finally presented to the U.S. Senate after federal agencies had constantly requested more oversight to crackdown the fiat-backed assets. The purpose, security, and stablecoins reserves have been a concern for regulators. They fear that market growth could affect consumers if no regulations are in place.
The stablecoins bill, known as the Stablecoin Innovation and Protection Act, aims at defining stablecoins and limiting issuance. Congressman Josh Gotthiemer had stated the bill would provide more direction and protect Americans.
Ripple and SEC’s Latest Update
Ripple’s case with the SEC is still far from over. As a reminder, the regulatory agency accused the crypto firm and two executives of organizing XRP offerings to the tune of $1.3 billion from 2013 to 2020. Currently, the SEC is requesting reconsideration after the court’s DPP ruling.
Last week, Ripple filed an opposition to SEC’s motion for partial reconsideration and more clarity on the DPP ruling. The latest development has Ripple’s co-defendant Brad Garlinghouse file a separate motion different from the motion filed earlier to SEC’s opposition seeking to reveal the Estabrook notes taken from the meeting between the then SEC head Elad Roisman and Ripple.
John Deaton of Cryptolaw thinks that these notes could help Ripple win the case against the SEC. U.S. attorney Jeremy Hogan believes that the next settlement discussion would be at a mediation, likely hosted by Judge Netburn. Both parties couldn’t reach a compromise during the first settlement discussion a few months ago.