Friedman is optimistic that this year will usher in favorable crypto regulation.
Ripple’s Head of Policy, Susan Friedman, is hopeful that this year will usher in a “common sense cryptocurrency policy” despite political headwinds.
— Susan Friedman (@ss_friedman) January 12, 2023
In an interview with cryptocurrency news outlet Cointelegraph, Friedman revealed the efforts being made that could give birth to clearer regulations for the nascent industry.
According to Friedman, industry players have increased their dialogue with policymakers to establish crypto regulatory clarity. She noted that the ongoing dialogue is more sophisticated than it was two years ago, adding that there are leaders in Congress pushing for legislative solutions for crypto.
“We now have leaders on both sides of the aisle in both parts of Congress championing legislative solutions, and the dialogue around crypto is much more sophisticated than it was two years ago,” she said.
U.S. Crypto Industry Is Stuck In Regulatory Limbo
Friedman stated that the United States cryptocurrency industry is stuck in regulatory limbo, which has succeeded in pushing consumers to offshore platforms that have no U.S. regulatory oversight. She warned that if the U.S. crypto industry continues to operate without regulatory clarity, the country may lose its competitive position in crypto innovation.
Republican and Democrat Policymakers Push for Favorable Crypto Regulations
Friedman’s comment comes as policymakers from Democrats and Republicans in the House of Rep and Senate continue to push for cryptocurrency reforms. In March 2022, U.S. Senator Cynthia Lummis (R-WY) and Senator Kirsten Gillibrand (D-NY) collaborated on a bill to usher in favorable crypto regulations.
Despite being members of rival parties, the duo believes there is a need for favorable crypto laws to foster emerging market growth. The legislation cuts across diverse areas of crypto, including consumer protection, taxes, and privacy.
Ripple Lawsuit Could Play a Role in U.S. Crypto Regulation
Meanwhile, many crypto enthusiasts, including Cardano founder Charles Hoskinson, believe the outcome of the lawsuit between Ripple and the SEC will play a significant role in crypto regulation in the U.S.
If Ripple wins its case against the SEC, policymakers might be prompted to provide regulatory clarity for crypto.
However, if a ruling is granted in favor of the SEC, the industry may continue to operate without clear regulation, thus giving the agency the green light to continue its regulation by enforcement.