The Securities and Exchange Commission (SEC) has been extensively criticized for its regulatory stance in the crypto sector, which, according to many, has continued to hinder the expansion of the burgeoning market.
Ripple’s General Counsel, Stuart Alderoty, is one of the people in the cryptocurrency market who has been vocally opposed to the approach the SEC is taking to the regulation of cryptocurrencies. Alderoty discussed the regulatory instability of the crypto market in the United States in a recent POLITICO Live interview on September 20, where he focused on SEC Chair Gary Gensler’s overreach in the field.
According to Gensler, Bitcoin (BTC) is the only cryptocurrency that is not subject to SEC regulation. As a result, all crypto assets other than BTC are security and should be regulated by the agency.
In response to the comments, Alderoty said that he is unaware of any election in the crypto domain that led to Gensler being appointed as the crypto police officer on the beat.
“Well, I don’t remember anyone holding an election for the cop on the beat for crypto. I don’t remember Congress appointing Gary Gensler as the cop on the beat for crypto.” Alderoty said, “You [Gensler] cannot self-appoint yourself as the cop on the beat for crypto.”
Crypto sector hampered by unclear regulation
When comparing the United States to other developed economic hubs like Singapore, the United Kingdom, or Dubai, Alderoty noted that the crypto sector in the U.S. has been plagued by regulatory ambiguity for years.
As the Ripple General Counsel pointed out, the U.S. has been prioritizing politics and power above solid regulations through the SEC, which has been detrimental to startups, small businesses, and retail investors.
“What we’re doing here in the U.S., I think principally through the SEC as an institution, is that we’re elevating politics and power over sound policy. Doing this, you’re not only hurting innovation, innovators, and entrepreneurs like Ripple, you’re also hurting the retail holders of these assets because one in five Americans own or have interacted with cryptos,” Alderoty said.
Previously, Alderoty had criticized the SEC for the enormous damage it caused investors with its case against Ripple. According to him, the legal dispute is really a “rug pull” on the part of the SEC against XRP investors.
Court case rages on
Elsewhere, in its court case against the SEC, Ripple introduced a new argument claiming that the tokens couldn’t have been securities since there were no “investment contracts” involved in their issuance, which would guarantee investors’ rights or oblige the issuer to act in their interests, as Finbold reported.
Ripple stands accused by the SEC over the issuance of the XRP cryptocurrency, which the regulator claims happened without its approval as it considers the tokens securities, costing the blockchain company over $100 million in legal fees, according to its CEO Brad Garlinghouse.
In spite of the lawsuit, the blockchain company is joining the efforts for a greener future, along with hundreds of other businesses, with Ripple announcing on September 20 that it had signed the Climate Pledge.
Meanwhile, XRP has gained 20% in the last week as $3 billion flowed into its market cap despite prolonged SEC lawsuit.
Featured image via Twitter POLITICO Live