Ripple’s Legal Chief Urges Congress to Regulate Crypto Practices, Not Technology

CN
6 hours ago

Ripple’s chief legal officer, Stuart Alderoty, has called for a pragmatic approach to cryptocurrency regulation in the upcoming Congress. In a statement shared on social media platform X Wednesday, Alderoty stressed the importance of crafting legislation that supports innovation while leveraging regulatory frameworks already familiar to judges and regulators. He explained:

To move quickly and effectively in the new Congress, we must focus on legislation that fosters innovation and is rooted in frameworks familiar to regulators and judges, ones that regulate activity, not technology.

He urged lawmakers to avoid codifying abstract principles from the previous administration’s policies without rigorous study and broad agreement. “Codifying abstract concepts that fueled the previous administration’s war on crypto—without serious study and broad consensus—should be avoided,” the Ripple executive stressed.

This sentiment comes amid growing criticism of the U.S. Securities and Exchange Commission (SEC)’s hardline approach to cryptocurrency enforcement. SEC Commissioner Mark Uyeda has publicly advocated for a shift in the agency’s tactics, particularly actions targeting firms solely for failing to register without allegations of fraud or harm. “The commission’s war on crypto must end,” Uyeda said in a recent interview, emphasizing the need for regulatory clarity over punitive measures. These statements reflect a broader push within the industry for rules that clarify responsibilities without stifling technological growth.

The changing political landscape may further influence the direction of U.S. crypto policy. With the election of President Donald Trump, who has voiced support for digital assets, industry experts anticipate more favorable regulations for cryptocurrencies. His administration has signaled its intent to create a more supportive environment, as evidenced by appointing crypto advocate Paul Atkins to key regulatory positions. These developments underscore the urgency of balancing robust investor protections with policies that encourage innovation. Alderoty’s call for regulation focused on activity rather than technology echoes these priorities, suggesting that collaboration and thoughtful legislation will be critical to maintaining the U.S. as a leader in the digital asset space.

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