Cryptocurrency policy has remained extraordinarily contentious. With heavy remarks by Ripple Labs’ Chair, Chris Larsen, in his interview with Bloomberg on the 7th of September, there seems to be rising frustration among industry leaders. The former criticizes the current Biden administration’s approach to the sphere, suggesting it ‘screwed up’ cryptocurrency policy and with it, the prospect of making the United States a significant player in the game, alluding to the recent cases involving Ripple, Grayscale, and the SEC.
Larsen’s criticism hinges on his belief that regulatory efforts in the area have been misguided, leading to ambiguity and confusion within the sector. He singles out the SEC Chair, Gary Gensler, accusing him of relishing in the ambiguity to establish his own rules through intimidation.
Inferring that such a method lies outside the fundamental principle of American governance, Larsen proposes clear rules sourced from legislatures rather than ‘unelected, power-hungry and misplaced decision-makers’. But it is worth noting, Gensler, in his own defense, does assert the current cryptocurrency market is fraught with fraudulent acts and scams which he sees the SEC’s regulations as helping to rectify.
Furthermore, Larsen accuses the current Biden administration of causing great harm to the significant potential San Francisco held as the ‘blockchain capital of the world’. He views current policies as being instrumental in pushing the industry offshore – a decision he regards as a huge missed opportunity for the nation. Instead, he highlights Dubai, Singapore, and London as emerging global blockchain capitals, iterating the need for his home country, the United States, to lead such movements.
Shifting gears from Ripple to Ethereum, the race for the first US spot Ethereum ETF has begun to heat up. The CBOE plans to list the ARK 21Shares Ethereum ETF and VanEck Ethereum ETF on its exchange, and the SEC is obliged to make a decision on those filings. Still, it is probable the SEC may delay its decision, stamped by a final deadline around May 23, 2024.
This stirred pot of regulatory pushback and strategist murmurs exposes a teetering balance of technological innovation, consumer protection, and national pride. While players like Chris Larsen call out for regulatory clarity to endorse innovation, authorities like Gary Gensler maintain a strong front in ensuring investor protection. Given the rapidly evolving nature of blockchain and the sheer scale of its integration potential, finding this precarious balance becomes even more vital and considerably more challenging.
Source: Cointelegraph
