Amid his company’s ongoing legal battle with the SEC, Ripple’s chief legal officer has issued a public call for the United States to create a regulatory framework for the cryptocurrency industry.
Stuart Aldoroty, the chief legal officer for blockchain company Ripple, has expressed sheer dissatisfaction with the current regulatory landscape for cryptocurrency-related firms in the United States.
In the past few years, Ripple has spent hundreds of millions of dollars in its lawsuit with the SEC in a bid to get regulatory clarity for the XRP token, which it uses within the company’s technology stack to facilitate seamless cross-border payments.
While the courts have eventually ruled in favor of secondary sales of XRP not being a non-security in the U.S., Ripple’s chief legal officer (CLO) believes that much more is needed.
In a recent CNBC interview, Aldoroty recalled that “XRP as a digital token is now uniquely classified as a non-security in the U.S.” following the landmark July 13 judgment. Notably, XRP is the only crypto token that has received this clarity.
However, Ripple’s CLO shared the company’s opinion that the issue regarding the classification of cryptocurrencies in the country does not require distinct court cases but a regulatory framework.
He told the CNBC audience, “Even if we [Ripple] won in court, we don’t think that this issue should be fought token by token, case by case, judge by judge. We think we need a rational regulatory framework.”
Regulatory Framework Needed, But Not Near
Speaking further in the interview, Stuart Aldoroty shared the company’s opinion that a comprehensive regulatory framework is necessary for crypto to thrive in the U.S. He cited the existence of such regulatory requirements in regions like the European Union, Australia, Japan, Brazil, and many others.
Yet, Ripple’s chief legal officer fears that the U.S. may still be several years away from providing such regulatory clarity. He acknowledged ongoing efforts by leading policymakers to “develop rational regulatory proposals.”
Nonetheless, Stuart Aldoroty is not very optimistic about the chances of these regulations moving forward in the current Congress session or the next one. In the meantime, Ripple continues to conduct most of its businesses offshore but hopes that regulatory clarity will come soon enough for the company to tap into the U.S. market fully.
