According to U.Today, Ripple's Chief Legal Officer, Stuart Alderoty, has applauded the recent bipartisan vote in the US Senate to reject an anti-crypto rule proposed by the Securities and Exchange Commission (SEC). The rule, known as SAB 121, could have posed a significant threat to regulatory custodial services in the US. Alderoty stated that the 'unauthorized overreach' of SEC Chair Gary Gensler would not be tolerated by both parties.
Prominent figures in the cryptocurrency industry, including MicroStrategy co-founder Michael Saylor, have commended the Senate for voting to nullify the SEC's contentious SAB 121 guidance. The rule would have required regulated banking institutions to register the cryptocurrency holdings of their customers on their balance sheets. This was seen as problematic by the industry as it would make it difficult for banks to provide custodial services. Critics also pointed out that it could potentially infringe on the rights of cryptocurrency owners.
Hester Peirce, the SEC's cryptocurrency-friendly commissioner, criticized the agency's approach to regulating custodial services for digital assets as 'scattershot.' The cryptocurrency industry and banks joined forces in their efforts to overturn the SEC's SAB 121 rule. Banks opposed the rule as it would negatively impact their balance sheets due to the inherent volatility of cryptocurrencies. Despite the opposition, Gensler defended the rule, noting that the previous 120 SABs were not challenged.
Alderoty, who closely monitors the latest developments on Capitol Hill, has repeatedly emphasized the importance of bipartisan cooperation in dealing with cryptocurrency-related bills. He has also acknowledged recent attempts by US lawmakers to pass a much-anticipated stablecoin bill. Ripple is preparing to launch its own stablecoin, which has already attracted the attention of the SEC.
