The future of cryptocurrency regulation is in a flux with the United States Securities and Exchange Commission’s (SEC) continued review of their stance on Ripple and other digital currencies. The agency’s Chair, Gary Gensler, recently echoed mixed sentiments during a talk on artificial intelligence at the National Press Club.
Gensler was quizzed on whether the latest ruling on Ripple might necessitate federal legislation to clarify regulatory oversight. With a tone laced with pragmatism and caution, Gensler noted that while the SEC is comforted that the importance of protecting institutional investors has been recognized, the agency is still scrutinizing the court’s perspective on retail investors.
Some cryptocurrency exchange platforms perceive this as a victory and are relisting Ripple, thereby raising questions of whether this may set a precedent for future cases. However, Gensler reserved his comments citing ongoing litigation. Potentially, this could change the perspective on writing customized rules for crypto, though Gensler feels it’s still early days.
Reflecting on Republican proposed legislation, Gensler hinted on creating a decentralization test for crypto assets. However, he chose to reserve his comment on this draft legislation for members of Congress. The dynamic nature of the crypto industry was exhibited when Gensler pointed out how despite its decentralized aim, there is still centralization in many parts of the industry.
Meanwhile, financial platforms continue to push forward. For instance, Binance integrated the Bitcoin Lightning Network on its platform to cope with a backlog of pending transactions and high transaction fees. Whether this will influence regulatory perspectives remains to be seen.
As regulations take shape, stakeholders on all sides continue to participate in this evolving dialogue. Views are polarized but it’s undeniably clear how much the world has embraced the idea of moving value around on the internet without intermediaries. The crypto industry is not immune to the economics of finance and acknowledging this may be the first step towards clear regulations that protect all parties involved.
Source: Cointelegraph
