Svmuu News: Lauren Belive, Co-Head of Global Public Policy and Government Affairs at Ripple, stated that opposition to the CLARITY Act is not an opposition to the crypto industry, but rather anti-consumer, as it would leave crypto holders exposed to bad actors who exploit regulatory arbitrage.
Belive noted that the U.S. digital asset market already exists, but federal rules to protect consumers have not kept pace. She pointed out that the regulatory gaps that led to the FTX collapse and the loss of customer funds still remain.
Belive explained that the CLARITY Act would grant the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC) clear, shared jurisdiction over the digital asset market and require tokens to undergo regulatory oversight before entering the market.
Stuart Alderoty, Chief Legal Officer of Ripple and Chair of the National Cryptocurrency Association, said that opposing the CLARITY Act would allow the current unregulated status quo to persist and be exploited by bad actors.