Stuart Alderoty, General Counsel for U.S. based blockchain enterprise Ripple, has penned an article demanding the halt to the SEC’s regulatory attacks on crypto. In the same write-up, Alderoty emphasized the urgent need for sensible crypto legislation from Washington.
Commenting on the case in which the SEC accused Ripple of raising capital through an unregistered digital asset securities offering in 2020, Alderoty asserts that “the case has emerged as the bellwether to get clarity on how to classify and regulate digital assets in the U.S.”
Recently, Ripple CEO Brad Garlinghouse also spoke about the need for clear and consistent crypto regulations in a public interview.
Alderoty Calls out SEC for Bullying the Market
Criticizing the SEC for being heavy-handed in its approach to crypto companies, Alderoty claims that, “rather than provide regulatory clarity through rulemaking, the SEC seeks to bully the market by filing, or threatening to file, enforcement cases.” He added, “Unproven allegations masquerading as regulation is bad policy that hurts consumers and markets who are whipsawed by the whims of an unchecked regulator.”
In his most recent tweet, Ripple’s attorney said: “I would rethink the “logic” of saying that crypto markets have to succumb to SEC jurisdiction b/c that’s like saying drivers of electric cars don’t need seatbelts.” He continued: “It’s actually more like punishing electric car drivers b/c they don’t use SEC-owned and controlled gas stations.”
Congress May Need to Step In
Speaking on the debate around whether the XRP could be classified as a security or not, Alderoty insisted, “this is all precisely why Congress needs to fix this mess and provide a comprehensive legislative framework for crypto.”
“[The] two bipartisan proposals (the ‘Digital Commodity Exchange Act’ and the ‘Responsible Financial Innovation Act’) that seek to define the line between securities and commodities in the digital asset space are a good start,” Alderoty emphasized.
On the Flipside
- The legal battle between the SEC and Ripple has now been raging for 19 months.
Why You Should Care
Ripple outlined its potential plan to move to Canada in the event that it loses the case against the SEC.
Find out more about Ripple’s future plans:
Ripple Reveals Plans to Relocate if It Loses SEC Case – Sets up Shop in Canada
For recent developments on the Ripple v. SEC case, read:
Lawsuit Swings in Ripple’s Favor as Judge Denies the SEC’s Attorney-Client Privilege Claims