Ripple Labs’ chair and co-founder, Chris Larsen, believes that the United States legal system is poised to rectify the Biden administration’s missteps in its approach to the crypto industry.
Speaking to Bloomberg on September 7, Larsen expressed his perspective on the recent developments surrounding cryptocurrency regulation.
Larsen emphasized that the U.S. had made significant errors in crafting crypto and blockchain policy, leading to a lack of clarity and hampering the industry’s growth. He contended that the courts, rather than regulators, were now becoming the battleground for achieving regulatory clarity.
Highlighting Ripple Labs’ partial victory over the Securities and Exchange Commission (SEC) in July, Larsen argued that the regulator had lost on crucial aspects of the case, signaling the need for clearer guidelines.
Furthermore, Larsen referenced a recent court judgment in favor of Grayscale, which sought to convert its Bitcoin trust into a spot Bitcoin ETF.
He noted that this ruling had strongly criticized the SEC, shedding light on the ambiguity in crypto laws.
Larsen suggested that SEC Chair Gary Gensler favored this lack of clarity, allowing him to impose rules arbitrarily through bullying tactics.
In contrast to Gensler’s approach, Larsen advocated for clear rules established by legislatures rather than relying on unelected decision-makers.
He emphasized the need for transparency and fairness in the regulatory process.
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Larsen also criticized the Biden administration’s crypto policies, asserting that they had detrimental effects on San Francisco’s aspiration to be the “blockchain capital of the world.”
Despite Silicon Valley’s reputation as a tech hub, Larsen claimed that this potential had been squandered, as the administration seemed determined to push the crypto industry offshore.
He pointed to international competitors like London, Singapore, and Dubai, which have established themselves as global blockchain hubs due to their clear regulations that protect consumers and foster innovation.
Larsen questioned why the United States was not leading this charge, stressing the importance of returning to its historical role as a pioneer in innovation and regulation.
In conclusion, Chris Larsen’s remarks underscore the growing frustration within the crypto industry regarding the lack of clear and consistent regulatory guidelines in the United States.
He believes that the legal system is now the battleground for achieving the much-needed regulatory clarity to bring the U.S. back into the global crypto game and ensure its competitiveness in the blockchain industry.
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