Ripple executives argued that opposition to the CLARITY Act should not be framed as support for the crypto industry, but as a position that works against consumers. Lauren Belive, Ripple’s co-head of global public policy and government affairs, said the U.S. digital asset market already exists while federal consumer protections have failed to keep pace. She said the regulatory gap exposed by the collapse of FTX and the loss of customer funds still has not been closed.
Belive said the CLARITY Act would give the U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission clear shared jurisdiction over digital asset markets. She added that the bill would also require tokens to undergo regulatory oversight before entering the market.
Ripple Chief Legal Officer Stuart Alderoty, who also serves as president of the National Cryptocurrency Association, said opposing the CLARITY Act would preserve the current unregulated environment and leave room for bad actors to exploit it.
Ripple executives said opposition to the CLARITY Act would leave crypto consumers exposed to abuse in an under-regulated market.
According to ChainCatcher, Lauren Belive, Ripple’s co-head of global public policy and government affairs, said opposing the CLARITY Act is not the same as opposing the crypto industry. She said it is anti-consumer because it would keep digital asset holders exposed to bad actors that take advantage of regulatory arbitrage.
Belive said the U.S. digital asset market already exists, but federal rules meant to protect consumers have not kept up. She added that the regulatory gap highlighted by the collapse of FTX and the resulting loss of customer funds still remains in place.
She also said the CLARITY Act would give the U.S. Securities and Exchange Commission, or SEC, and the U.S. Commodity Futures Trading Commission, or CFTC, clear joint jurisdiction over digital asset markets. The bill would also require tokens to face regulatory oversight before entering the market.
Ripple Chief Legal Officer Stuart Alderoty, who is also president of the National Cryptocurrency Association, said opposition to the CLARITY Act would allow the current unregulated status quo to continue and be used by bad actors.
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