Alexander Grieve, government affairs leader at Paradigm, has tried to decode the US Securities and Exchange Commission’s recent attack on Ripple’s stablecoin project.
Alexander Grieve, government affairs leader at Paradigm, has tried to decode the US Securities and Exchange Commission’s recent attack on Ripple’s stablecoin project.
As Grieve noted, the mention of Ripple’s as-yet-unnamed stablecoin project came after it became clear that the stablecoin legislation would not be attached to the Federal Aviation Administration (FAA) Reauthorization Act. ) of 2024. This presented an opportunity for the SEC to go after the SEC in its recent filing.
The agency mentioned that Ripple was preparing to launch an “unregistered crypto asset.” The stablecoin project was unveiled by the San Francisco-based company last month.
As of now, lawmakers are still negotiating the content of the stablecoin bill. Last month, U.S. House Rep. Maxine Waters (D-California) hinted that a final version of it could be ready in the near future.
As Guru-Investingreported, Sens. Kirsten Gillibrand (D-N.Y.) and Cynthia Lummis (R-Wyo.) introduced a new version of their stablecoin legislation in April. Notably, the bill would make the issuance of algorithmic stablecoins illegal.
“The Lummis-Gillibrand and McHenry-Waters stablecoin bills leverage prudential oversight (i.e. Fed, OCC, FDIC, state regulators) for stablecoin regulation… To the SEC (a member of PWG!) doesn’t seem to care,” Grieve said.
Additionally, he highlighted that stablecoin issuers currently do not have to register with the SEC, which is why he finds the “unregistered” part puzzling.
He urged Congress to pass “technologically neutral” and “sensible” stablecoin legislation that would put an end to the SEC’s “ridiculous efforts.”
Paradigm hired Grieve last year so it could influence US cryptocurrency policy. Back then, it noted that there was “legislative momentum” in Congress, meaning the industry’s efforts were not in vain. He also cited Ripple’s partial victory against the SEC as a positive development for the industry.
