Ripple lawyer: SEC’s shakedowns put consumers in charge

0
0

Ripple Labs general counsel Stu Alderoty has hit back at a recent op-ed by Security and Exchange Commission chairman Gary Gensler, arguing that the regulator’s crypto market shakedowns are failing to protect consumers.

In an Aug. 28 op-ed in the Wall Street Journal (WSJ) titled “The SEC Wants to Be America’s Crypto Cop,” Alderoty claimed that the SEC is “pushing its tracking regulators aside” rather than focusing on providing clarity on the issue. regulations for crypto.

He gave an example of BlockFi’s recent “shakedown” by the SEC, which led to the company “landing on the auction block” and two other similar companies “going upside down,” arguing:

“Consumers were not protected, they kept holding the bag.”

The piece came in response to Gensler’s August 19 article, “The SEC Treats Crypto Like the Rest of the Capital Markets,” which was also published on WSJ defending the crypto industry regulator’s crackdown.

ALSO READ  Tezos activates 11th network upgrade

However, the Ripple attorney argues that the SEC has not provided sufficient clarity on crypto regulation and instead declares itself to be “the agent on the beat” for crypto.

He claims that the chairman is “putting aside his fellow regulators” and President Biden’s executive order is “walking the front”, asking regulators to cooperate in crypto regulation.

The executive order, which Alderoty referred to, is the “Ensuring Responsible Development on Digital Assets,” which was signed on March 9, 2022 to ensure that both the SEC and the Commodity Future Trading Commission (CFTC) coordinate and work together in establishing an crypto regulatory framework.

ALSO READ  Ethereum gathers steam for Merge, ENS domains soar and strikers wait patiently

However, Aldetory alleges that the SEC has not complied with the executive order nor provided any “regulatory clarity for crypto” and instead is “protecting its territory at the expense of more than 40 million Americans in the crypto economy.”

Gensler argued in his article that US federal security laws are designed to protect 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 different technology.”

Related: SEC Lists 9 Tokens As Securities In Insider Trading Case ‘Could Have Broad Implications’ – CFTC

But many critics disagree, with TBEN writer Roslyn Layton suggesting in an Aug. 28 op-ed that the SEC’s decision to double the staffing of Crypto Assets and Cyber ​​Unit would reduce the “regulation through enforcement” of the SEC as reasons to the contrary.

ALSO READ  Algorand Foundation Outlines $35 Million Exposure to Cryptocurrency Lender Hodlnaut

Earlier this month, US Attorney John Deaton also alleged foul play, in that Gensler and the SEC deliberately targeted cryptocurrencies, and that it has exceeded the limit of what they can currently do to regulate crypto:

“It doesn’t take a constitutional law expert to understand that the SEC has limited jurisdiction over the crypto industry; excluding congressional actions, frontline regulation of digital assets belongs to the Commodity Futures Trading Commission – the primary regulator of investments that are not considered traditional securities.