Ripple Counsel Slams SEC, “If SEC Ran Animal Control”, Details

Alderoty slams the SEC again.

Stuart Alderoty, Ripple’s General Counsel, has taken a jab at the United States Securities and Exchange Commission (SEC). In a tweet yesterday, Alderoty shared an image of someone preventing a fish from swimming freely in a pond. The General Counsel at Ripple captioned the photo, “If the SEC ran animal control.”

It also shows that SEC would even have tried to put a collar around fish necks to control them.

If the SEC ran animal control… https://t.co/mneuZfGgCy pic.twitter.com/k3mHYgPxQ1

— Stuart Alderoty (@s_alderoty) April 28, 2023

The tweet mocks SEC and suggests that the Securities and Exchange Commission would have prevented fish from swimming freely if it had control over animals. 

Gensler Knocks Crypto Companies 

Alderoty’s remark is in reaction to SEC Chairman Gary Gensler’s recent statement. Gensler tweeted that intermediaries for investment contracts are required to comply with securities laws and register with the Securities and Exchange Commission. 

He noted that crypto-related businesses are contending that their investment contracts are different. Gensler clarified that the law is focused on “what something actually is,” not the title people give to it. 

Alderoty Picks on SEC 

Meanwhile, Alderoty’s response to the SEC Chair will not come as a surprise to many. It bears mentioning that Alderoty is a major critic of the securities regulator. He is one of the major crypto stakeholders who believe the SEC’s focus on regulation by enforcement for the industry can drive innovation out of the United States. 

As reported last month, Alderoty described the SEC’s invitation to crypto companies asking them to “come in and register” as a bait-and-switch trap. He noted that the securities regulator knows there is no path to registration, yet it has continued to invite crypto companies to “come in and register.” 

Alderoty’s recent remarks come less than 48 hours after Ripple slammed the SEC’s crypto regulatory approach. 

“The US’ approach to crypto regulation continued to focus on regulation by enforcement instead of rulemaking,” said Ripple.