The US Securities and Exchange Commission (SEC) has encountered a setback as the United States Senate has rejected an anti-crypto bill proposed by the regulator. Ripple’s Chief Legal Officer (CLO), Stuart Alderoty, has celebrated this as a significant victory for the cryptocurrency industry.
SEC’s Anti-Crypto Bill Rejected by Senate
On March 31, 2022, the SEC introduced Staff Accounting Bulletin No.121 (SAB121), which sought to mandate financial institutions to treat clients’ crypto assets as liabilities on their balance sheets. This move was seen as a threat to decentralized cryptocurrency practices and US regulatory services. Alderoty criticized this as an overextension of authority by SEC Chair, Gary Gensler.
The Senate and the House of Representatives voted against the SAB-121 proposal, with nearly unanimous bipartisan support. Paul Grewal from Coinbase revealed that the Senate obtained around 60 yes votes, condemning the SEC’s actions.
Alderoty praised the Senate’s rejection of the bill, asserting Gensler’s regulatory overreach. He emphasized the need to respect technological innovation and avoid undue regulatory interference.
Michael Saylor also expressed support for the Senate’s decision, signaling a growing acceptance of cryptocurrencies among lawmakers and financial institutions.
The failure of the SEC’s bill marks a blow to their regulatory approach towards cryptocurrencies following legal disputes with Ripple and enforcement actions against various crypto companies.
Pro-Ripple Lawyer Criticizes SEC’s Enforcement
Pro-XRP lawyer John E. Deaton criticized the SEC’s aggressive actions in the crypto industry as “regulatory insanity,” attributing them to Senator Elizabeth Warren’s influence for political reasons.
Warren supported the anti-crypto bill, claiming it would protect investors from cryptocurrency risks. Deaton countered this, accusing the SEC of causing financial harm under the guise of investor protection and criticizing Warren for prioritizing personal agendas over investor interests.
