With eye on 2021 law, crypto industry to ‘engage’ with Congress in 2022

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“We’ve seen a ramping up of regulation by enforcement. We’ve seen a ramping up of the strategic ambiguity and an effort by regulators, quite frankly, to engage in a regulatory land grab, which I think is more akin to politics rather than policy,” Alderoty said in an interview.

Ripple is in a legal battle with the SEC over the company’s sale of $1.3 billion of cryptocurrency XRP. The SEC alleged Ripple conducted an unregistered securities offering through the sale, which Ripple denies.

The company this year proposed a regulatory framework for cryptocurrency that endorsed legislation introduced by Rep. Tom Emmer, R-Minn., that would prevent tokens from being considered securities. Another bill, introduced in the last Congress by then-Rep. K. Michael Conaway, R-Texas, is expected to be reintroduced in the new year and would place crypto exchanges under CFTC oversight. 

Ripple also endorsed a bipartisan bill introduced by House Financial Services ranking member Patrick T. McHenry, R-N.C., and Rep. Stephen F. Lynch, D-Mass., that would convene a group including representatives from the SEC, CFTC and private sector to work on the issue. The House passed the bill in April. 

Stablecoins

The industry is also eager to engage lawmakers on stablecoins, another area where action is expected in 2022. Stablecoins are cryptocurrencies whose value is tied to another asset, such as the dollar. The sector is growing rapidly, reaching a market capitalization of $147 billion last month, according to a House Financial Services memo. 

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