Ripple Labs' president has strongly criticized the U.S. Securities and Exchange Commission (SEC) for its approach to regulating the cryptocurrency sector, claiming that the regulator is actively hostile towards the industry. She argued that the current method of rule-setting through enforcement is ineffective and counterproductive.
Speaking at the Money20/20 fintech conference in Amsterdam, Ripple President Monica Long expressed her discontent with the SEC's stance on the cryptocurrency industry. She highlighted the efforts of the Fairshake Super Political Action Committee (PAC) and the industry's support for political candidates who advocate for favorable regulatory frameworks. Long stated that the PAC operates in a bipartisan manner, aiming to back candidates aligned with the interests of the crypto sector. She stated:
"As an industry, especially for U.S.-based companies like ours, we are frustrated by the slow pace of rule-setting in the U.S. This approach of setting rules through enforcement is unproductive and ineffective."
Ripple recently increased its contributions to Fairshake, donating an additional $25 million. Andreessen Horowitz (a16z) and Coinbase have also made similar donations of $25 million each.
Amid growing regulatory scrutiny and political attention, the cryptocurrency industry is actively seeking to influence U.S. legislation. The SEC has filed lawsuits against several prominent crypto firms, including Ripple, Coinbase, and Kraken, for violations of securities laws. The regulator is seeking to impose fines of $2 billion on Ripple. Congress recently passed a resolution to overturn the SEC's controversial Staff Accounting Bulletin 121 (SAB 121), which imposes rules that could harm the crypto sector. However, President Joe Biden vetoed the resolution.
The Ripple executive emphasized that the SEC's actions in recent years indicate a hostile approach towards the crypto industry, and there is a collective desire for a change in tone. When asked about her confidence in the industry's ability to influence U.S. policies, Long responded optimistically, stating: "Yes, I'm hopeful."
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