US Senate Overturns SEC Regulation and Could Benefit XRP

The United States Securities and Exchange Commission (SEC) recently faced a significant defeat after an attempt to implement legislation restricting the cryptocurrency market was rejected by the United States Senate. Ripple’s General Counsel, Stuart Alderoty, did not hide his satisfaction, declaring this event a milestone for the crypto sector.

In March 2022, the SEC introduced Staff Accounting Bulletin No. 121 (SAB121), a proposal that would require financial entities to record cryptoassets held for customers as liabilities. Stuart Alderoty criticized the proposal as an “unauthorized overreach” by Gary Gensler, chairman of the SEC, highlighting the threat it posed to the decentralized essence of the crypto sector.

The response from the Senate and House of Representatives was overwhelmingly against the SEC’s proposal, with a near-unanimous rejection from both sides of the political spectrum. Paul Grewal, Coinbase’s General Counsel, celebrated the decision in a post on X (formerly Twitter), highlighting that the Senate vote reached a significant majority of around 60 votes in favor of the repeal.

Alderoty reinforced the victory in another publication, underlining that Gensler’s attempts to impose controls on the sector were being rejected and that technological innovation must transcend partisan divisions. Former MicroStrategy CEO Michael Saylor also celebrated the decision, highlighting the Senate’s bipartisan support for Bitcoin and cryptocurrencies in general.

Finally, something D’s and R’s can agree on: Gensler’s unauthorized overreach when it comes to crypto will not be tolerated. https://t.co/oOdOGOyxmB

— Stuart Alderoty (@s_alderoty) May 16, 2024

This defeat marks yet another setback for the SEC, which has recently faced legal challenges in its attempts to regulate the sector, including lawsuits against big names like Ripple, UniSwap and Coinbase.

John E. Deaton, a lawyer and supporter of XRP, harshly criticized the SEC’s actions on his XRP account, calling them “regulatory insanity.” He mentioned that the SEC was being instrumentalized by political figures, such as Senator Elizabeth Warren, to push personal political agendas, disregarding the well-being of the investors it was supposed to protect.

In short, the collapse of SEC bill SAB-121 is seen not only as a regulatory defeat, but also as a sign of the cryptocurrency industry’s growing power and influence in the political and financial corridors of the United States.

Disclaimer:

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