Ripple has urged the SEC to focus on statutory enforcement rather than creating new crypto regulations, proposing that such responsibilities should be left to Congress.
Legislative Role in Crypto Regulation
Ripple's statement directed at the SEC highlights the need for legislative intervention in crypto regulation. The SEC's role has been disputed, with Ripple advocating for Congress's active involvement in shaping regulatory frameworks. According to Ripple's official response, 'Congress is actively considering market structure and stablecoin legislation. It is the role of policymakers to establish new legal standards governing crypto assets.'
Market Reactions to Ripple's Appeal
The industry response suggests potential shifts in regulatory landscapes, with businesses anticipating clearer guidelines. Market reactions show volatility, influencing investor sentiment negatively. CoinMarketCap reports XRP's current price at $2.40 with a 24-hour volume of $3.12 billion, experiencing a 1.16% decrease over 24 hours. XRP's market cap stands at $139.34 billion, with market dominance at 5.04%.
Analysis: Past Debates and Market Impact
Similar debates around regulatory roles have occurred, notably during the 2017 crypto boom. Such events often dictate market movements, as clarity in regulatory expectations is vital for industry stability. Potentially, statutorily-focused regulations could streamline market practices, aligning with historical trends where clear frameworks reduced compliance burdens. Stuart Alderoty, Ripple's Chief Legal Officer, emphasized the need for clarity by stating, 'The SEC should return to first principles and, within the bounds of existing statutes, strive to provide straightforward market guidance that has been absent to date.'
Ripple's call for Congress to handle crypto regulation underscores the importance of legislative involvement and may influence future regulatory strategies in the crypto industry.
