Ripple’s Chief Legal Officer Stuart Alderoty has called out federal officials for their approach toward regulation in the cryptocurrency sector.
Alderoty took to Twitter to express his frustration with “unelected senior bureaucrats” who have been “publicly prejudging every crypto as a security.” In his tweet, Alderoty also emphasized the need for “bureaucrats” to recognize the “consequences” of their words on the increasingly flourishing global digital asset industry.
“Suddenly now saying that you haven’t prejudged every crypto (with the possible exception of BTC) as a security, after being called out for publicly prejudging every crypto as a security doesn’t unring the bell. Words have consequences, even for unelected senior bureaucrats,” he tweeted Saturday. He was referring to Securities and Exchange Commission (SEC) Chairman Gary Gensler’s assertion that he has the authority to determine security.
Suddenly now saying that you haven’t prejudged every crypto (with the possible exception of BTC) as a security, after being called out for publicly prejudging every crypto as a security doesn’t unring the bell. Words have consequences, even for unelected senior bureaucrats.
— Stuart Alderoty (@s_alderoty) April 1, 2023
Alderoty previously cautioned U.S. politicians against supporting the anti-crypto campaign of Sen. Elizabeth Warren, D-Mass., saying there was a lack of accuracy in her views on cryptocurrency.
“Before other politicians join Sen. Warren’s anti-crypto army, remember her 2020 campaign for the Democratic presidential nomination failed so miserably she dropped out after being declared unelectable,” he tweeted Friday.
Warren has been seeking conservative Senate Republicans to join her efforts to form a unified alliance against the digital asset industry. Her cryptocurrency bill aims to implement strict anti-money laundering regulations to curb potential fraud.
Earlier, Ripple CEO Brad Garlinghouse condemned Gensler for “dictating what is a security.” The executive underlined the need for developing consistent regulatory guidelines to encourage innovation and protect investors.
For the Chair of the SEC to assert that he dictates what is a security – and not the legislation from which his agency derives its power – is beyond comprehension. It’s time for elected officials in the US to take notice. https://t.co/kvat6ixUdS
— Brad Garlinghouse (@bgarlinghouse) March 30, 2023
The crypto community has been expressing resentment over the lack of regulatory clarity from the SEC.
Meanwhile, the SEC boss has maintained that rules for the cryptocurrency market are in place, but the industry is “rife with noncompliance.”
“The regulations actually already exist, sir. They’re called the securities regulation, and so there are disclosure regulations for when somebody tries to raise money from the public,” Gensler said at the House Appropriations Subcommittee on Financial Services and General Government last week. “We’ve seen the Wild West of the crypto markets, rife with noncompliance.”
The Ripple CEO’s remarks came as the U.S.-based currency exchange was embroiled in a legal battle with the SEC. The federal agency filed a lawsuit against the exchange in 2020, accusing it of raising $1.3 billion in an unregistered securities offering. It said there were several irregularities in the offerings.
Ripple’s attorneys claimed the SEC failed to provide “fair notice” regarding securities regulation violations, reported Protos. Both parties have filed requests for summary judgment, which is expected this month.
