SEC’s Chair Is Playing Hide And Seek, Ripple Counsel

Ripple Lab’s General Counsel Stuart Alderoty recently slammed the US Securities and Exchange Commission Chair, Gary Gensler, on Twitter.

The Ripple Counsel believes the US SEC is playing hide and seek with the crypto industry. But now, the problem has grown beyond crypto, becoming a broader fight with the people.  

The Fight Is Now A “We The People” Problem, Alderoty

In the post, the Alderoty hinted that Gensler regards the judicial process as a weapon he can wield. 

Further, he accused the SEC chair of seeing Congressional oversight as a “hide and seek game.”

Alderoty concluded by saying that the SEC problem has gone beyond crypto. 

This is not the first time Alderoty jabbed at the US SEC Chair, Gensler. Since the case between Ripple Labs and the SEC kicked off in 2020, there have been a lot of exchanges between the two parties. 

In another instance, Alderoty stated that Gary Gensler’s call for crypto firms to come and register is bait. 

He believes there is no path to registration, and many experts in crypto and beyond have recognized this fact. 

Alderoty made the statement while reacting to Bloomberg’s report about Coinbase Wells’s notice from the US SEC. 

The US SEC sent a Wells Notice to Coinbase alleging the exchange may have violated US securities law. As such, it informed the exchange that it might face potential enforcement action from the commission, sparking several reactions in the industry.

In a more recent development, Bittrex exchange filed for Chapter 11 bankruptcy protection three weeks after the US SEC charged it for the same offense, violations of securities laws. 

This is besides the SEC Vs. Ripple’s case is still awaiting summary judgment on the same allegations. 

Other Top Shots Frown At US SEC Approach

The SEC filed a lawsuit against Ripple Labs and its executives, alleging the sale of a crypto security product, XRP, without proper registration. 

Ripple has maintained XRP is not security, leading to the 3-year-long court case now awaiting a summary judgment. 

But there have been many arguments in the industry that there is no clear regulatory framework for crypto firms to register and operate in the US. 

Many top shots, such as Coinbase CEO Brian Armstrong, even noted that many crypto firms might leave the US to establish in other countries due to regulatory uncertainty. 

These arguments and SEC’s approach to enforcing compliance within an unclear regulatory framework have always attracted negative reactions from crypto enthusiasts. 

According to the CryptoLaw founder John Deaton also representing thousands of XRP holders, “the SEC is exploiting the legal uncertainty about crypto” to redefine security under the Howey test. 

Meanwhile, the Chamber of Commerce filed an amicus curia brief supporting Coinbase’s case against the US Securities and Exchange Commission. 

Also, while there is no set date for the SEC Vs. Ripple summary judgment, CEO Brad Garlinghouse is optimistic that it will fall within 2 to 6 months.