The United States Securities and Exchange Commission (SEC) is planning to focus on developing “clear” crypto regulations after dropping its case against digital payments company Ripple, per a new X post from Commissioner Hester Peirce.
Clear Crypto Framework Underway, Hester Peirce Says
According to Peirce’s Monday X post, the SEC’s decision to dismiss its legal action against Ripple is a “welcome development” for the federal regulator.
“Last week, the SEC’s case against Ripple was finally laid to rest,” Peirce wrote. “A welcome development for many reasons, including that minds once occupied with litigation now can concentrate on creating a clear regulatory framework for crypto.”
In response, SEC Chair Paul Atkins threw his support behind Peirce’s statement and advocated developing explicit crypto policies.
“Commissioner Peirce is right. With this chapter closed, we now have an opportunity to shift our energy from the courtroom to the policy drafting table,” Atkins said. “Our focus should be on building a clear regulatory framework that fosters innovation while protecting investors.”
SEC Complaint Against Ripple Dropped
The SEC formally dropped its years-long complaint against Ripple on August 7, alleging it violated federal securities laws.
The company’s co-founder, Christian Larsen, and CEO, Brad Garlinghouse, were also charged with raising more than $1.3 billion “through an unregistered, ongoing digital asset securities offering” in 2020.
Following Peirce’s Monday X post, Garlinghouse reposted the regulator’s statement to his own account on the platform.
The End of Regulation-by-Enforcement
The SEC’s decision to drop its enforcement action against Ripple is in line with the agency’s broader shift away from its regulation-by-enforcement approach in the digital asset sector under previous Chair Gary Gensler.
The SEC has rescinded legal action against several other key players in the crypto industry in recent months, including Binance, Kraken and Coinbase.
Atkins and Peirce’s statements may indicate a shift within the federal regulator toward clarity and collaboration.
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