Bipartisan Cooperation Essential for Cryptocurrency Innovation, Says Ripple's Chief Legal Officer

According to U.Today, Ripple's Chief Legal Officer, Stuart Alderoty, has emphasized the necessity of bipartisan cooperation for cryptocurrency innovation. Alderoty expressed his satisfaction that both political parties agree that the U.S. Securities and Exchange Commission (SEC) is 'out of control.' This statement came after the US House of Representatives voted to overturn the SEC's guidance on cryptocurrency custody on Wednesday. The SEC's Staff Accounting Bulletin No. 121 (SAB 121) mandates financial institutions to include the cryptocurrency holdings of their customers on their own balance sheets. Critics of this guidance argue that it would make it nearly impossible for banks to custody cryptocurrencies. The guidance has also been criticized by pro-crypto SEC Commission Hester Peirce, who described the agency's approach to regulating custody services as 'scattershot' and 'inefficient.' Interestingly, 21 Democrats joined the Republicans in the House to overturn SAB 121, indicating that the crypto industry has bipartisan support. Representatives of major cryptocurrency players and banking groups have been lobbying against the SEC guidance, marking a rare moment of unity between the two industries. However, it is still uncertain whether the resolution will garner enough support in the Senate, which is currently under Democratic control. Last month, Alderoty also expressed his approval of the upcoming stablecoin bill, stating, 'There is much left to be done, but great to also see others in Congress now engaging positively with crypto regulation.' He shared this on the X social media network.