The Securities and Exchange Commission (SEC) has come under fire for its regulatory stance in the cryptocurrency sector, which many say has continued to impede the expansion of the booming market.
Ripple’s general counsel, Stuart Alderoty, is one of those people in the cryptocurrency market who has opposed the SEC’s approach to regulating cryptocurrency. Alderoty discussed regulatory instability in the US crypto market recently Politico Life an interview On September 20, he focused on the abuse of SEC chief Gary Gensler in the field.
According to Gensler, Bitcoin (BTC) is the only cryptocurrency that is not regulated by the Securities and Exchange Commission (SEC). As a result, all crypto assets other than BTC are securities and must be regulated by the agency.
In response to the comments, Aldrotti said he was not aware of any crypto elections that led to Gensler being called the crypto police.
“Well, I don’t remember anyone running a police election on crypto. I don’t remember Congress appointing Gary Gensler to set the tempo for crypto.” Al-Derruti said: “You [Gensler] You cannot set yourself as a cop to the beat of cryptocurrency.”
Cryptocurrency sector hampered by unclear regulation
When comparing the US to other advanced economic centers such as Singapore, the UK or Dubai, Aldroti noted that the US crypto sector has been suffering from regulatory uncertainty for years.
As Ripple’s general counsel pointed out, the US prioritized politics and power over strong regulation through the Securities and Exchange Commission, which was detrimental to startups, small businesses and private investors.
“What we do here in the United States, I think primarily through the SEC as an institution, is that we elevate politics and power over sound policies. By doing that, you are not only hurting innovators, innovators and entrepreneurs like Ripple, but also the sellers of these assets because one in five Americans owns or interacts with cryptocurrencies.”
Previously, Alderoty had criticized the Securities and Exchange Commission (SEC) for the massive damage it caused to investors in its case against Ripple. According to him, the legal dispute is in fact “pulling the rug” by the Securities and Exchange Commission against XRP investors.
Elsewhere, in its lawsuit against the Securities and Exchange Commission, Ripple made a new argument claiming that tokens cannot be securities because there were no “investment contracts” involved in their issuance, which would guarantee investors rights or force the issuer to dispose of their interests, As reported by Coinphony.
The US Securities and Exchange Commission has accused Ripple of issuing XRP cryptocurrency, which the regulator claims happened without its approval as it considers tokenized securities, costing the blockchain company more than $100 million in legal fees, according to CEO Brad Garlinghouse.
Despite the lawsuit, the blockchain company is joining efforts for a greener future, along with hundreds of other companies, as Ripple announced on September 20 that it had signed the Climate Pledge.
Meanwhile, XRP has surged 20% in the past week as $3 billion has been pumped into market capitalization despite protracted lawsuits from the SEC.
Featured image via Twitter Politico Life
The General Counsel of Post-Ripple Blasts, the head of the Securities and Exchange Commission, appeared and asked who he named the “crypto police” for the first time on Coinphony.