The United States Securities and Exchange Commission (SEC) has suffered another embarrassing failure with the anti-cryptography law proposed by the regulator has been completely turned off by United States Senate. Ripple (CLO) Chief Legal Officer Stuart Alderoty openly celebrated this result, marking it as a noteworthy victory for the cryptocurrency industry.
The SEC’s anti-cryptography law is weakening
On March 31, 2022 at US SEC proposed Employee Accounting Bulletin No. 121 (SAB121), requiring financial institutions responsible for customers’ crypto assets to record or record these digital assets as liabilities on their balance sheets. This Act, seen as danger to the decentralized nature of the cryptocurrency industry and US regulatory custody services marked by Alderoty as an “unauthorized overreach” by the SEC chairman, Gary Gensler.
In a near-unanimous decision, with bipartisan support, the Senate and House of Representatives voted strongly against the controversial SAB-121 proposal.
Paul Grewal, legal director of the Coinbase cryptocurrency exchange, revealed in a post on X (formerly Twitter) that the Senate voted to repeal with a majority of about 60 yes votes and an additional rebuke for the SEC’s “overreach and contempt for federal administrative law.”
Additionally, Alderoty commemorated the Senate’s rejection of the SEC’s anti-cryptography bill, underlining that Gensler’s attempt to control the cryptocurrency industry was getting out of control. He also stated that ongoing efforts by the regulator to govern the industry beyond its remit will no longer be tolerated, emphasizing that technological innovation should not be a partisan issue.
MicroStrategy co-founder and former chief executive officer (CEO), also Michael Saylor commented on SEC’s Withdrawn Bill on Post X, celebrating the Senate’s bipartisan decision.
“Wall Street wants Bitcoin, the House of Representatives wants Bitcoin, and now the Senate wants Bitcoin,” Saylor said.
Now, the failure of the SEC’s proposed bill is a major blow to the regulator aggressive stance on cryptocurrency regulation. This comes right after the agency’s legal battle with Ripple and a number of enforcement actions and lawsuits against cryptocurrency companies such as UniSwap, Coinbase, Binance, MetaMask and others.
Moreover, the annulled law emphasizes growth influence of the cryptocurrency industry in both technology and political circles, ensuring recognition among lawmakers and customary banking institutions in the US.
Ripple supporter’s lawyer calls SEC actions ‘regulatory madness’
In another post X, John E. Deatonlawyer and XRP supporter described SEC’s aggressive enforcement actions in the crypto industry as “regulatory madness”. He revealed that the US SEC was used as a weapon by Senator Elizabeth Warrena crypto-antagonist supporting her political programs.
As a spokesman for SEC Bill SAB-121, Warren expressed support for the anti-crypto proposal, arguing that by approving the rule, investors would have better protection against the risks associated with cryptocurrency volatility.
Deaton revealed that the SEC’s efforts to “protect investors” were laughable, given that the regulator caused greater financial hardship for the investors it supposedly protects. He also stated that Warren placed her programs above investor protection.
Chart from Tradingview.com
