Ripple CEO Brad Garlinghouse hopes 2023 will be the year the US achieves regulatory clarity for crypto. He pointed out that the leading economies – EU, Singapore, Brazil and Japan were working to introduce crypto regulations to ensure safety and security for users. He added that The UK is already ahead of the US.
“Today is the first day of the 118th Congress. While prior efforts at regulatory clarity for crypto in the US have stalled, I am cautiously optimistic that 2023 is the year we will see a breakthrough,” the Ripple CEO said.
Earlier, both Democrats and Republicans in the House of Representatives, and the Senate started drafting new regulations for crypto assets. Garlinghouse said these bills were not yet introduced, but the proposals could act as the starting point for debate in congress.
“The building blocks for regulation have already been introduced, and we have a chance to get this right for millions of Americans who already are and will continue to be- interested in crypto.”
US representatives are working on crypto regulations
To avoid another FTX collapse, US representatives and regulators are planning to introduce new crypto guidelines for users. Democrats believe that regulations on stablecoins and crypto assets would help in the growth of the crypto market in the US.
Recently, Janet Yellen, US Treasury Secretary, officially stated that the country needs rigid regulations on the crypto industry.
In November 2022, Sherrod Brown, Chairman of the Senate Banking Committee, stated, “It is crucial that our financial watchdogs look into what led to FTX’s collapse so we can fully understand the misconduct and abuses that took place. I will continue to work with them to hold bad actors in crypto markets accountable.”
Related: SEC wanted to keep Hinman documents private
Ripple made a strong case before the court to compel the SEC to provide the draft of the Hinman 2018 speech. But the SEC refused to provide it. Even now, although the SEC has officially submitted the documents, the documents are accessible to the public or Ripple because the SEC maintains custody of the documents for security purposes.
The financial watchdog requested the court to keep the Hinman documents private, saying that it was not the time to reveal the documents to the public. Ripple believes it will be a shred of critical evidence to win the case against SEC. The crypto community believes that the SEC is just buying court time by creating doubts about whether the regulator is hiding something.
Stuart Alderoty, General Counsel for Ripple, said it was worth fighting to get major evidence. He tweeted, “Over 18 months and 6 court orders, we finally have the Hinman documents. Meanwhile the documents remain confidential at the SEC’s insistence.”
The Hinman documents contain a speech made by the former SEC director William Hinman that he made at the Yahoo markets summit held in June 2018. He reportedly said that the native token of Ethereum is not a security. At that time, there was still no clear guidance from the US regulator on how they classify digital assets.