Ripple’s chief legal officer, Stuart Alderoty, was thrilled when the US Senate recently decided unanimously to get rid of a controversial Securities and Exchange Commission (SEC) rule. The cryptocurrency business was shocked by this decision.
A rule called SAB 121 guidance was seen to be risky by many because it could affect regulatory custody services in the US. This is the reason why both the bitcoin business and traditional banks fought against making it happen.
When Alderoty spoke out against what he saw as “unauthorized overreach” by SEC Chair Gary Gensler, he didn’t hold back. It was made clear that neither side would stand for that. A lot of important people in the world of crypto agreed with him. For example, Michael Saylor, co-founder of MicroStrategy, praised the Senate for getting rid of the rule that caused a lot of trouble.
Ripple Banking Custodial Challenges
A major component of the problem was that controlled banks had to put their customers’ cryptocurrency stocks on their balance sheets. A lot of people were against this move because it could hurt custodial services and the rights of crypto users.
It was clear that even people in the same agency didn’t agree with the way the agency was doing things. SEC Commissioner Hester Peirce called it “scattershot” and not in line with how quickly digital assets change.
Blockchain and banks’ decision to work together showed that both groups wanted to fight back against rules that they saw as holding back progress and making life too hard for many people.
Banks were worried that the rule would hurt their balance sheets because crypto is so risky.However, Gensler stuck to his support for the rule, saying that SABs hadn’t been looked at with such close attention in the past.
Ripple’s chief legal officer Alderoty, who pays close attention to what happens in Washington, D.C., said that lawmakers from both parties need to work together on rules that affect cryptocurrencies. He said that people are still working to get a stablecoin bill passed. Ripple is keeping a close eye on this because it is getting ready to start its own stablecoin while regulatory bodies look over the bill.
