© Reuters
Chief Legal Officer Stuart Alderoty has publicly criticized Securities and Exchange Commission (SEC) Chairman Gary Gensler for his approach to the cryptocurrency industry, especially in light of the SEC’s legal battle with Ripple. Mr. Alderoty’s comments are a response to Mr. Gensler’s recent speech at the Securities Enforcement Forum.
In his speech last month, Mr. Gensler cited Joseph P. Kennedy’s philosophy that one should not prejudge but investigate. However, Mr. Alderoty asserts that the SEC did not follow this principle in the Ripple case. He accuses the SEC and its chairman of having a preconceived bias against the cryptocurrency industry, which he says influenced their legal actions without thorough investigation.
The controversy dates back to December 2020, when the SEC accused Ripple of securities law violations related to its sales of XRP, the digital asset associated with the company. The SEC suffered a setback when Judge Analisa Torres ruled that XRP was not a security. She ruled that Ripple’s programmatic sales were legal, with the exception of some past, direct sales to institutional clients. This decision is a significant victory for Ripple, as it calls into question the SEC’s stance on the regulatory status of cryptocurrencies.
While Ripple faces legal hurdles, the SEC continues to file lawsuits against other cryptocurrency entities such as Coinbase (NASDAQ:) and Binance. Despite these ongoing cases, Mr. Gensler maintains that it is the only cryptocurrency that does not fall within the regulatory scope of the SEC.
This article was generated and translated with the help of AI and reviewed by an editor. For more information, see our T&Cs.