Stuart Alderoty, the general counsel at Ripple believes that crypto is inching toward a decisive moment in 2022.
Why 2022 Is Decisive For Crypto
In an extensive blog post on March 18, Alderoty observed that cryptocurrencies have witnessed tremendous growth in recent years, quadrupling in 2021 alone. This suggests that crypto has become a legitimate, transformative industry and the immense public interest and usage is just undeniable.
The general counsel argues that the very future of the crypto sector is on the line given 2022 has been branded the year of clearer regulations. This is the year we will either see policymakers and industry leaders agreeing to work together to come up with coherent legislation or we will continue to struggle with regulatory uncertainty.
Alderoty further noted that the U.S. Securities Exchange Commission (SEC) has unequivocally “created an unlevel playing field where they get to pick winners and losers”. The regulator, for instance, has chosen enforcement actions instead of orderly rulemaking for the crypto industry.
The SEC infamously commenced a suit against Ripple and its current and former chief executives on allegations that they distributed the XRP cryptocurrency for seven years in what the agency deemed illegal unregistered securities trades.
While the SEC and other regulators in the U.S. continue to stifle innovation, Alderoty says, competitors elsewhere are busy embracing digital assets, blockchain-powered instant payments, and central bank digital currencies (CBDCs).
Alderoty admits that creating a comprehensive regulatory framework for governing crypto assets will not be easy. But one thing remains clear: slapping innovators with unfounded lawsuits is not helpful. Ripple, meanwhile, has put together a framework that provides a prompt and pragmatic plan for regulation that allows for the dynamism of crypto assets.
Ripple’s general counsel hopes regulators in the U.S. can take a constructive approach towards crypto by the end of this year. If not, another country will overtake the U.S. to become the leader of the digital asset revolution in 2023.