We’ve seen an intensification of regulation through enforcement. “We’ve seen an intensification of strategic ambiguity and an effort by regulators, quite frankly, to engage in regulatory land grabs, which I think is closer to politics than politics,” Aldrotti said in an interview.
Ripple is in a legal battle with the SEC over the company’s sale of $1.3 billion in XRP cryptocurrency. The Securities and Exchange Commission alleges that Ripple made an offer of unregistered securities through the sale, which Ripple denies.
This year, the company proposed a regulatory framework for cryptocurrencies that supported legislation introduced by Representative Tom Emyr of the Republic of Minnesota that would prevent tokens from being considered securities. Another bill, introduced by the then Representative in the last Congress. K. Michael Conaway, R-Texas, is expected to reintroduce in the new year and will put cryptocurrency exchanges under the supervision of the CFTC.
Ripple also passed a bipartisan bill introduced by senior House Financial Services member Patrick T. McHenry and Representative Stephen F Lynch of Massachusetts that would convene a group that includes representatives from the Securities and Exchange Commission, the CFTC and the private sector . sector to work on the issue. The House passed the bill in April.
The industry is also eager to get regulators involved in stablecoins, another area where action is expected in 2022. Stablecoins are cryptocurrencies whose value is tied to another asset, such as the dollar. The sector is growing rapidly, with a market capitalization of $147 billion last month, according to a note by House Financial Services.