The approach of the U.S. Securities and Exchange Commission (SEC) to regulating the cryptocurrency sector has been heavily criticized by the president of Ripple Labs, who believes that the regulator is on a destructive path. Ripple President Monica Long voiced her concerns at the Money20/20 fintech conference in Amsterdam, stating that the current approach is inefficient and unproductive.
Long discussed the efforts of the Fairshake Super Political Action Committee (PAC) and the wider cryptocurrency industry’s support for political candidates who favor crypto-friendly regulations. She explained that the PAC operates on a non-partisan basis, aiming to endorse candidates who advocate for regulatory frameworks that benefit the crypto sector. Long expressed her frustration with the slow progress of the U.S. in setting regulations, emphasizing that relying on enforcement to establish rules is ineffective.
In a show of support, Ripple recently increased its contributions to Fairshake by donating an additional $25 million. Other prominent players in the industry, such as Andreessen Horowitz and Coinbase, have made similar donations. The crypto industry is actively engaging in efforts to influence U.S. legislation due to the growing regulatory scrutiny and political attention it is facing. The SEC has filed lawsuits against several major crypto firms, including Ripple, Coinbase, and Kraken, for violating securities laws. The regulator is seeking to impose a staggering $2 billion in fines on Ripple. Congress recently passed a resolution to overturn the SEC’s controversial Staff Accounting Bulletin 121 (SAB 121), which imposes rules that could negatively impact the crypto sector. However, the resolution was vetoed by President Joe Biden.
Long emphasized that the SEC’s actions in recent years suggest a hostile stance towards the crypto industry, and there is a collective desire for a change in the regulator’s approach. When asked about her confidence in the industry’s ability to influence the SEC, Long expressed optimism and hope.
What are your thoughts on Ripple President Monica Long’s criticism of the SEC’s approach towards the crypto industry? Share your opinions in the comments section below.
