Ripple’s General Counsel Blasts SEC Chair, Asks Who Appointed Him ‘Crypto Cop’
The Securities and Exchange Commission (SEC) has been widely criticized for its regulatory stance in the crypto sector, which many say has continued to hinder the expansion of the burgeoning market.
Ripple’s general counsel, Stuart Alderoty, is one of the people in the cryptocurrency market who has been vocal against the SEC’s approach to the regulation of cryptocurrencies. Alderoty discussed the regulatory instability of the US crypto market in a recent POLITICO Live interview Sept. 20, where he focused on SEC leader Gary Gensler’s overreach in the field.
According to Gensler, Bitcoin (BTC) is the only cryptocurrency that is not subject to SEC regulation. As a result, all cryptoassets other than BTC are securities and should be regulated by the agency.
In response to the comments, Alderoty said he is not aware of any election in the crypto domain that led to Gensler being named crypto police officer on the beat.
“Well, I don’t recall anyone holding an election for the cop on the beat for crypto. I don’t recall Congress appointing Gary Gensler to be the cop on the beat for crypto.” Alderoty said, “You [Gensler] can’t even appoint yourself as the cop on the beat for crypto.”
The crypto sector hampered by unclear regulation
When comparing the US to other developed economic hubs such as Singapore, the UK or Dubai, Alderoty noted that the crypto sector in the US has been plagued by regulatory ambiguity for years.
As Ripple General Counsel pointed out, the US has prioritized politics and power over sound regulation through the SEC, which has been detrimental to startups, small businesses and retail investors.
“What we’re doing here in the United States, I think mainly through the SEC as an institution, is we’re elevating politics and power over sound policy. If you do this, you’re not only hurting innovation, innovators and entrepreneurs like Ripple, you’re also hurting the retail holders of these assets because one in five Americans own or have interacted with cryptos,” Alderoty said.
Earlier, Alderoty had criticized the SEC for the huge damage it caused to investors with its case against Ripple. According to him, the legal dispute is essentially a “rug pull” on the part of the SEC against XRP investors.
The trial rages on
Elsewhere, in its lawsuit against the SEC, Ripple introduced a new argument claiming that the tokens could not have been securities since there were no “investment contracts” involved in the issuance, which would guarantee investors’ rights or oblige the issuer to act in their interests, as Finbold reported.
Ripple is being sued by the SEC over the issuance of the XRP cryptocurrency, which the regulator claims occurred without its approval as it reviews the token’s securities, costing the blockchain company over $100 million in legal fees, according to CEO Brad Garlinghouse.
Despite the lawsuit, the blockchain company is joining the effort for a greener future, along with hundreds of other businesses, with Ripple announcing on September 20 that it had signed the Climate Pledge.
Meanwhile, XRP has gained 20% in the past week as $3 billion poured into its market cap despite protracted SEC litigation.
Featured image via Twitter POLITICO Live
