- Stu Alderoty claims that SEC does not have sufficient clarity over crypto regulation.
- Gensler highlighted in his article that U.S federal security laws were made to safeguard investors.
Stu Alderoty, general counsel of Ripple labs, has hit back at a recent opinion piece by United States security and Exchange Commission chair Gary Gensler, mentioning that the regulator’s crypto market shakedown is not protecting consumers’ rights.
According to an opinion-based article by the Wall Street Journal (WSJ) on Monday titled “the SEC wants to Be America’s Crypto Cop,” Alderoty declared that SEC is trying to “push aside his fellow regulators” in place of focusing on delivering regulatory clarity for crypto.
He stated an example regarding the recent “shakedown” of BlockFi by the Security and Exchange Commission, which forced the firm to end “up on the auction block” and two similar companies going “belly up,” claiming: “Consumers weren’t protected, they were left holding the bag.”
In an article by Gensler on August 19, it is mentioned that “The SEC Treats Crypto Like the Rest of the Capital Markets.” Wall Street Journal further covered the article and defended the regulator’s crackdown on the crypto industry.
Stu Alderoty claims that SEC does not have sufficient clarity over crypto regulation and then declares itself as “the cop on the beat” for cryptocurrency.
He also argues that the chairman is “pushing aside his fellow regulators” and “Front-running” Joe Biden orders directed regulators to team up on crypto regulation.
Alderoty’s executive order refers to “Ensure Responsible Development on Digital Assets” on 9th march, 2022; the executive order was signed to ensure that SEC (Security and Exchange Commission) and CFTC( Commodity Future Commission) coordinate and collaboratively work on founding a crypto regulatory Framework.
Regardless, Aldetory asserts that the SEC has neither abided by the executive order nor delivered any “regulatory clarity for crypto,” and in place of this, “protecting its turf at the expense of more than 40 million Americans in the crypto economy.
Gensler highlighted in his article that U.S federal security laws were made to safeguard investors and that “there is no reason to treat the crypto market differently from the rest of the capital markets just because it uses a totally different technology and mechanism.”
CryptoLaw Founder and famous XRP enthusiast John Deaton blew off steam on the U.S Securities and Exchange Commission. This reaction of Dean was in response to the latest reports of the agency investigating Coinbase. The SEC is investigating Coinbase in regards to trading unregistered securities. Unregistered securities is a term that regulators have started using concerning cryptocurrencies.
According to data from Coinmarketcap, while writing this Article native token of Ripple XRP is trading at $0.3257.
Source: https://www.thecoinrepublic.com/2022/09/01/sec-shakedowns-leave-consumers-holding-the-bag-stu-alderoty-ripple-counsel/