Contradictions in Cryptocurrency Regulation: Ripple’s Lawyer Challenges SEC and Treasury Secretary’s Divergent Stances
Stuart Alderoty, a prominent lawyer at Ripple, took to Twitter to shed light on conflicting statements from the Securities and Exchange Commission (SEC) and Treasury Secretary Janet Yellen.
In a recent lawsuit involving Coinbase, the SEC referred to the cryptocurrency market as an “approximate error” in the larger scheme of global capital markets and reaffirmed its authority in this sector. However, in a stark contradiction, Yellen urged Congress just one day prior to enact new legislation to address regulatory gaps in the cryptocurrency space.
Yellen Calls for Urgent Cryptocurrency Regulation
Against the backdrop of the FTX exchange collapse and increasing vulnerabilities in the digital asset space, Treasury Secretary Janet Yellen urged Congress to swiftly enact new legislation to regulate the cryptocurrency market. According to coinshiba.online , Yellen pointed out a significant regulatory gap, emphasizing the need for clear legal frameworks governing the immediate market of digital assets not classified as securities.
The proposed Financial Innovation and Technology Act is one of these legislative efforts aiming to grant federal regulatory bodies clear oversight of digital asset markets, with the goal of enhancing customer protection and market integrity.
Coinbase Challenges the SEC
In a federal court in Manhattan, Coinbase and the SEC are engaged in a legal battle that could set a precedent for the classification of digital assets. The core of the debate revolves around whether cryptocurrencies like Solana, Cardano, and Polygon, traded on Coinbase and considered investment contracts by the SEC, should be registered as securities.
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Coinbase opposes this idea, arguing that cryptocurrencies do not align with the traditional definition of an investment contract. The lawsuit brought forth by the SEC goes beyond symbolic gestures, targeting exchange “staking” programs, which the agency insists should be registered.
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