SEC in the Hot Seat
Chris Larsen, the chair of Ripple Labs, did not hold back his disdain for the current handling of crypto policies under the Biden administration and SEC Chair Gary Gensler. Larsen asserted that the ongoing legal disputes have indicated a need for the Congress to spearhead a policy re-evaluation to bring “clarity” and usher the industry “back in the game.”
In a recent interview with Bloomberg, Larsen pinpointed the victories for Ripple and Grayscale in court as evidence of the regulatory body’s failure to uphold “everything that was important” in governing the industry. He slammed Gensler for exploiting the ambiguities in crypto laws to “make up the rules as he goes along through bullying.”
A Victory for Grayscale, A Failure for SEC?
Larsen voiced his support for Grayscale’s triumph in court, which enabled the firm to transition its Bitcoin trust into a spot Bitcoin ETF. He emphasized that the judgment “really admonished the SEC […] in a way that you don’t really see very often.”
The Ripple Labs chair was unyielding in his critique of Gensler, accusing him of fostering uncertainty in the crypto space to wield control over industry players indiscriminately. This approach, according to Larsen, veers away from the “American way,” calling for clear legislation to prevent arbitrary decision-making by “unelected, power-hungry” individuals.
The Decline of San Francisco as a Blockchain Hub
Larsen went further to criticize President Biden, accusing his administration of practically “killing” San Francisco’s potential to become the “blockchain capital of the world.” He lamented the missed opportunity to foster innovation within the iconic tech hub, attributing the decline to policies pushing the industry offshore.
In contrast, he praised cities like London, Singapore, and Dubai for establishing themselves as global leaders in the blockchain sector, championing “clear rules that protect consumers and also celebrate innovation.” Larsen closed his arguments with a pressing question reflecting his vision for America’s future in the crypto space: “Why isn’t America leading that call? That’s what we’ve always been, and we’ve got to get back to it.”
As the debate on crypto and blockchain regulation intensifies, figures like Chris Larsen are urging the United States to recalibrate its approach. The recent court rulings stand as a testament to the growing dissatisfaction with the current administrative strategies. It remains to be seen whether Larsen’s call for legislative clarity and a more innovation-friendly policy landscape will be heeded in the near future. Only time will tell if America can “get back in the game” and re-establish its foothold in the dynamic world of crypto and blockchain technology.