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Chris Larsen Challenges U.S. Regulatory Missteps

Chris Larsen, the co-founder and chair of Ripple Labs, expressed his views on the crypto policies of the Biden administration and the Securities and Exchange Commission (SEC) in a recent interview. He asserted that the U.S. has missed the mark on crypto and blockchain policy, and it is now through the courts, rather than regulators, that the industry will regain its footing.

SEC vs Ripple Labs: A Recap

In July, Ripple Labs scored a partial victory against the SEC as the court ruled that XRP is not a security. This was in stark contrast to what the regulatory body had intended for the cryptocurrency industry. Larsen claimed that the regulator “lost on everything” that mattered to them and the industry.

Criticism of the SEC

Moreover, Larsen pointed out the court’s recent decision in favor of Grayscale over its application to convert its Bitcoin trust into a spot Bitcoin ETF. He stated that this ruling “really admonished the SEC”, a scenario that hardly ever happens. Larsen has shown optimism that this could mark the beginning of the end of the SEC’s policy of regulation by enforcement, which he considers to be a failure.

Call for Congressional Intervention

Larsen hopes that the courts’ dismissive stance towards the SEC’s regulatory approach may lead to Congress stepping in to lead on crypto policy. He believes that such intervention could provide the clarity and direction that the industry desperately needs.

In the face of unwelcoming crypto and blockchain policies, industry leaders like Larsen look towards the courts and Congress for resolution. The recent court rulings suggest a looming change in regulatory approach, marking a potential turning point for the crypto industry. As the legal battle continues, it is clear that this sector is determined to fight for its survival and growth.

Key Points

What does Ripple Labs’ victory mean for the crypto industry?

According to Larsen, the court’s ruling in favor of Ripple Labs is an indication that the courts do not concur with SEC’s stand on regulation by enforcement. This could imply that the legal system will play a key role in regulating the industry henceforth.

What does the SEC’s loss signify?

The loss signifies a major setback for the SEC’s attempts to regulate the crypto industry. An unfavorable ruling against its enforcement policies could provoke a reevaluation of these strategies.

What changes does Larsen expect in the future of crypto industry?

Larsen envisions congressional intervention in future, which could provide the much-needed clarity and direction for the crypto industry. He believes that a regulatory approach led by Congress, rather than enforcement by regulatory bodies, can help revitalize the industry.



Greetings, I go by the name of Flavien - a devoted supporter of cryptocurrency and a tech aficionado who has been keeping track of the developments in the world of blockchain and digital currencies since 2019. The potential of decentralized digital currencies to revolutionize our financial systems has captivated me, and I'm constantly exploring the most recent trends and advancements in this ever-evolving industry. As a content creator for Krypto Channel, my aim is to deliver informative and engaging articles that shed light on all aspects of the crypto world. Whether you're a seasoned investor or simply curious about blockchain technology, I am here to keep you updated on the latest happenings and trends. Being part of this lively and dynamic community is an honor, and I am thrilled to share my passion for cryptocurrency and blockchain with all of you.
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