Ripple’s Co-Founder Slams SEC on Its Crypto Policy

In a recent development, Ripple's co-founder, Chris Larsen, insinuated that the United States Securities and Exchange Commission's (SEC) policy on crypto is being rejected by courts. His comments came after the SEC lost its court cases against Grayscale and Ripple Labs.

The U.S. Congress Could Take Charge of Crypto Policy

During a Bloomberg interview on September 6, 2023, Larsen stated that the SEC has lost everything it has against the crypto industry and Ripple.

Recall that during a court hearing on July 13 for the case between Ripple Labs and SEC, Judge Analisa Torres ruled in favor of Ripple that the sale of XRP and other distributions by the crypto firm do not have the status to be called a security.

Moreover, the securities regulator, SEC, also lost its court case against Grayscale on August 29, during a court hearing at the U.S. Court of Appeal, District of Columbia.

The court instructed the SEC to evaluate the crypto firm's application to change its Bitcoin Trust status to a Bitcoin spot ETF.

As a result of these outcomes, Larsen opined that the courts are dismissing the SEC's crypto policy. He shared his beliefs via his Twitter handle, stating that the U.S. legal team could take control of the crypto policy.

I sincerely hope we're seeing the beginning of the end of the SEC's policy of regulation by enforcement. The Courts are rejecting it, and now it's time for Congress to take the lead on crypto policy.

Thanks @EdLudlow @technology for the chat! https://t.co/3gZOR4lq5J

- Chris Larsen (@chrislarsensf) September 6, 2023

Regulatory Policies Have Drawn U.S. Backwards in Blockchain Development

During the interview with Bloomberg, Larsen pointed out that San Francisco would have become the Blockchain Capital of the World." However, the U.S. government's hostile and strict crypto policies and regulations made it lose its status.

According to Larsen, Singapore, Dubai, and London are currently the major hubs for the blockchain industry. Regulatory uncertainties forced crypto firms to move their operations outside the United States.

Larsen's remarks also highlight the ongoing conflicts between the U.S. SEC and crypto firms, which have been advocating for stricter regulations of the crypto industry after some high-profile crypto firms went bankrupt, including the failure of the crypto exchange FTX.

Despite the recent crypto victories against the SEC, Larsen expressed regret that progress was made through litigations and not via active regulation. He also stated that the SEC's chairperson's approach to crypto regulation is enforcement-based rather than legislative-based.

Larsen further added that he just likes the lack of clarity on crypto policy that allows him to go after anyone and create rules as he pleases through intimidation, which is not the norm in America.

Again, the Ripple chairman also blasted Senator Elizabeth Warren's position on crypto in the United States.

He noted that opined that her statement that the crypto industry should have spoken out more forcefully against the Massachusetts Democrat's influence is not welcomed.

According to Larsen, her policy is essentially on her building an anti-crypto army and not on protecting the interest of consumers.

The post Ripple's Co-Founder Slams SEC on Its Crypto Policy appeared first on The Tech Report.