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Ripple lawsuit raises hopes as ‘Crypto Mom’ condemns SEC policy

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“It’s annoying to me that for three years now I’ve been asking for a regulatory clarification, and it doesn’t seem like we’re offering anything.”

SEC Commissioner Hester Peirce, also known as the “crypto mom” among the digital asset community, has expressed her dismay at the agency’s lack of efforts to provide clarity in the space.

Hester Peirce, who recently published a statement with Commissioner Elad Roisman against the way the agency regulates cryptocurrency, gave her harshest assessment yet in an interview with Yahoo Finance.

“It’s annoying to me that for three years now I’ve been asking for a regulatory clarification, and we don’t seem to be providing anything. I think that’s really becoming a huge hindrance to this industry’s ability to develop in a safe way, but also in a way that allows innovation to happen. It’s a real shame. To me, we don’t just take on the responsibility as regulators to develop a regulatory framework.”

There are currently two out of five commissioners who publicly express their opposition to the practice of regulation by the Securities and Exchange Commission in the area of ​​digital assets.

The majority are still willing to continue filing lawsuits against established companies that have been trying to understand and follow the (fairly ambiguous) regulatory framework for their activities.

Coinbase, the largest cryptocurrency exchange in the United States, has warned the public and investors that the Securities and Exchange Commission (SEC) is preparing a case against the company.

Circle, the issuer of the USDC stablecoin, announced yesterday that it is also subject to the scope of the securities regulator. It received an “investigative subpoena” from the SEC’s enforcement division requesting “documentation and information relating to certain of our properties, client programs, and operations.”

Ripple Labs recently provided comments on crypto and blockchain laws, which can be summed up in three bullet points: to encourage innovation in crypto, to increase public-private cooperation, and to engage the Senate in current legislative efforts.

The letter praised Commissioner Pierce’s proposal for a “safe harbor” under which network developers would be exempted for three years from
Registration provisions for federal securities laws, during which time they will be allowed to launch their products and develop their networks through token transactions.

If “network maturity” is achieved at the end of the three-year period, token transactions will not trigger the security registration requirements, SEC Peirce proposed.

Ripple also suggested that the Senate consider two new proposed bills: the Securities Clarity Act (SCA) and the Digital Goods Exchange Act (DCEA).

“The SCA and DCEA seek to provide legal clarity to industry, markets, and consumers in a way that no ad hoc regulation can simply through an enforcement approach.

Moreover, these bills are an tacit acknowledgment that the laws crafted for our ancient financial system simply cannot be added to cryptocurrencies and blockchain – instead, a flexible approach designed to address and remedy the specific challenges posed by this space is required. Ripple encourages the Senate to consider both the SCA and DCEA as they work to provide the certainty needed to maintain the industry within the United States while also maintaining the strong protections for consumers and investors that have made US capital markets the best in the world.”

Talk about the lack of clarity in the US crypto space has been going on for years, but the SEC’s lawsuit against Ripple raised the stakes for everyone.

The “Cryptocurrency Experience of the Century” is likely to set a precedent, and Ripple has no plans to settle for it on the cheap. The blockchain company is looking forward to the lawsuit having a chance to help correct the regulatory environment for everyone in the crypto industry.

Using the words of Jeremy Hogan, a friendly lawyer for the XRP community, Ripple can save the industry from the SEC.

XRP holders recently scored a big win despite their movement’s refusal to intervene. Judge Annalisa Torres granted them friend Correa status.

Movers, in their personal capacity, are permitted to act as a friend of the court in this procedure. As such, movers shall be allowed to assist the Court by briefing the legal issues relevant to the case as previously approved by the Court,” the order stated.

There is more on Ripple:

Ripple pushes SEC against the wall: ‘If it’s personal opinions, no franchise’

Ripple Burying SEC in Papers in XRP Suit: Nearly 30,000 Requests

Time is running out for Ripple as the BIS “conspires” to end the cryptocurrency threat to the financial system

Ripple responds to Senator Tommy on XRP, the Securities and Exchange Commission, and how to do better

SEC v. Ripple: XRP Interest and Currency Value Backed by Former US Treasurer

SEC vs. Ripple: What’s Next on the Agenda for XRP?

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