The United States Securities and Exchange Commission (SEC) recently suffered a significant blow when its attempt to impose legislation on the cryptocurrency market was rejected by the United States Senate. Stuart Alderoty, General Counsel for Ripple, expressed his satisfaction, considering this event a major milestone for the crypto sector.
In March 2022, the SEC introduced Staff Accounting Bulletin No. 121 (SAB121), a proposal that would require financial institutions to classify customer-held cryptoassets as liabilities. Stuart Alderoty criticized the proposal as an unauthorized exaggeration by SEC President Gary Gensler, emphasizing the threat it posed to the decentralized nature of the crypto sector.
The response from both the Senate and the House of Representatives overwhelmingly rejected the SEC’s proposal, with near-unanimous opposition from both sides of the political spectrum. Paul Grewal, General Counsel for Coinbase, celebrated the decision on X (formerly Twitter), noting that the Senate vote garnered a significant majority of approximately 60 votes in favor of repealing the proposal.
Alderoty further emphasized the victory in another publication, highlighting the rejection of Gensler’s attempts to impose controls on the sector and emphasizing that technological innovation should transcend partisan divisions. Former MicroStrategy CEO Michael Saylor also celebrated the decision, recognizing the bipartisan support for Bitcoin and cryptocurrencies in general.
Finally, a common ground was found among Democrats and Republicans: Gensler’s unauthorized overreach in the crypto industry will not be tolerated.
This defeat is yet another setback for the SEC, which has faced legal challenges in its efforts to regulate the industry, including lawsuits against major players like Ripple, UniSwap, and Coinbase.
John E. Deaton, a lawyer and XRP supporter, strongly criticized the SEC’s actions on his XRP account, labeling them as “regulatory insanity.” He mentioned that the SEC was being used by political figures, such as Senator Elizabeth Warren, to advance personal political agendas, disregarding the well-being of the investors it is supposed to protect.
In summary, the rejection of SEC bill SAB-121 is not only a regulatory defeat, but also a testament to the growing power and influence of the cryptocurrency industry in the political and financial realms of the United States.
Disclaimer: The views and opinions expressed by the author or any individuals mentioned in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing or trading cryptocurrencies carries the risk of financial loss.
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