Stuart Alderoty, General Counsel at Ripple, says that if U.S. Congress and regulators do not “work together to provide regulatory clarity to the crypto industry,” 2023 could be the first year “a country other than the U.S. leading the digital asset revolution.”
In an op-ed piece published on Friday (March 18) on RealClearMarkets.com, Alderoty started by noting that “blockchain technologies are transforming the way we exchange value and information.”
Next, he talked about the “misguided litigation” started by the U.S. Securities and Exchange Commission (SEC) against Ripple in December 2020:
“Since the SEC’s unfounded suit against Ripple was filed, it has become increasingly clear—as we said from the very beginning—that the case is a haphazard attempt to regulate the cryptocurrency and blockchain industry as a whole. The lawsuit against Ripple won’t be the last—SEC Chair Gensler has warned of increased enforcement actions against the industry. Ill-conceived, ad hoc litigation instead of orderly rulemaking, hobbles the entire digital asset ecosystem.“
Ripple’s General Counsel went on to say that this “regulation by enforcement” approach does not provide the regulatory clarity that consumers and crypto companies badly need:
“If there’s one lesson of this litigation for the entire cryptocurrency industry and users, it’s that regulation by enforcement doesn’t provide the regulatory clarity needed by innovators and consumers. Unfortunately, in an effort to advance its own jurisdiction, the SEC seems to prefer what one current Commissioner described as pursuing an agenda of “strategic ambiguity.”
“The industry is not asking to be free of regulation. Rather, the industry is clamoring for clear rules of the road to foster innovation and growth around these technologies. Thoughtful regulation, consistently applied, leads to predictable results.
“SEC Chair Gensler says today’s cryptocurrency market is like a football field with no ref. To the contrary, the SEC has created an unlevel playing field where they get to pick winners and losers according to an ambiguous set of rules they make up as they go along.“
He then explained that there would be a crypto “brain drain” if the regulatory climate in the U.S does not improve soon:
“Blockchain technology is advancing with or without cooperation from U.S. regulators, and it will be the American public who get left behind if the government cannot keep up. As a proud American company, it is discouraging to see talent and businesses (and tax dollars) leave the U.S. due to this uncertain and unwelcoming environment. Major industry players, such as FTX and Crypto.com are headquartered outside of the U.S., which is materially hurting the U.S.’ leadership and innovative potential by causing a crypto ‘brain drain‘.“
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.