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Sunday, December 4, 2022

Ripple Counsel: SEC’s Shakedowns Can Leave The Consumers Holding The Bag

The comment comes amid accusations from Ripple Labs and other detractors that the SEC went too far in enforcing the crypto market.

Gary Gensler, the United States Securities and Exchange Commission chairman, recently published an opinion piece in which he claimed that the regulator’s crackdowns on the cryptocurrency industry were not safeguarding consumers. Ripple Lab’s general counsel Stu Alderoty has responded.

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Alderoty asserted that the SEC is “pushing aside his fellow regulators” in favor of focusing on providing regulatory clarity for cryptocurrency in an opinion post published on Monday in the Wall Street Journal (WSJ) titled “The SEC Wants to Be America’s Crypto Cop.”

The essay was written in response to Gensler’s “The SEC Treats Crypto Like the Rest of the Capital Markets” article from August 19 in the Wall Street Journal, which justified the regulator’s efforts to suppress the cryptocurrency market.

The Ripple Counsel: Shakedowns Might Leave Consumers Holding The Bag: 

The Ripple counsel, on the other hand, claims that the SEC hasn’t been sufficiently clear about cryptocurrency regulation and positions itself as “the cop on the beat” for cryptocurrency.

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President Biden’s executive order, which calls on regulators to work together on crypto regulation, is allegedly being “front-run” by the chairman, who is allegedly “pushing aside his colleagues regulators.”

The “Ensuring Responsible Development on Digital Assets” executive order, to which Alderoty referenced, was signed on March 9, 2022, to ensure that the SEC and Commodity Future Trading Commission (CFTC) coordinate and work together to build a regulatory framework for cryptocurrencies.

Aldetory asserts that the SEC is instead “protecting its turf at the expense of more than 40 million Americans in the crypto economy” and has not only disregarded the executive order and failed to provide any “regulatory certainty for crypto.”

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