Ripple’s chief legal counsel, Stuart Alderoty, is urging for the United States Securities and Exchange Commission (SEC) and its chairman, Gary Gensler, to be held accountable for their actions. Alderoty emphasizes that Gensler’s statements have legal consequences and raises concerns about his prejudgment and lack of neutrality when it comes to considering digital assets.
One of the main criticisms against Gensler is his consistent labeling of cryptocurrencies, except for Bitcoin, as securities. This bias is seen as hindering the careful analysis required to determine the security classification of assets within the crypto industry. Jake Chervinsky, Blockchain Association Policy Lead, argues that Gensler should recuse himself from enforcement actions related to the nascent asset class and highlights the importance of impartial assessment through the Wells Process. The Wells Process involves evaluating cases initiated by the SEC staff neutrally by the commissioners, who are meant to be unbiased.
Additionally, there are concerns about the integrity of the SEC’s enforcement actions against cryptocurrency exchanges. Exchanges such as Kraken, Bittrex, Coinbase, and Binance have faced enforcement actions from the SEC. However, industry leaders have criticized the commission for potential favoritism, particularly in the case of the now bankrupt FTX derivatives exchange. Even Binance CEO, Changpeng “CZ” Zhao, has raised questions about the fairness and integrity of the SEC’s enforcement proceedings, highlighting the lack of action against FTX despite its illegal operations.
In the ongoing SEC vs. Ripple lawsuit, there have been allegations that the lawsuit was staged. However, the involvement of pro-XRP lawyer John E. Deaton and 76,000 XRP investors demonstrates the genuine nature of the case. Deaton clarifies that his motion to intervene has never been filed in the United States, where individual investors would typically request to be defendants in a lawsuit. He affirms that the legal battle between the SEC and Ripple is real, citing Coinbase and Kraken’s delisting of XRP due to the lawsuit as additional evidence of its authenticity.
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Critics within the crypto community have questioned how Ripple, a company sued by the SEC for illegal activities, can participate in prominent fintech-related events, implying a premeditated plan. However, Australian-based lawyer Bill Morgan disagrees and believes that Ripple’s contribution to driving institutional adoption of digital assets justifies its involvement in such events.
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In summary, Ripple’s chief legal counsel, Stuart Alderoty, is calling for accountability at the SEC and Chairman Gary Gensler, citing the legal consequences of Gensler’s statements. Concerns are raised about Gensler’s prejudgment and lack of neutrality in considering digital assets, as he consistently labels cryptocurrencies, except Bitcoin, as securities. There are also concerns about the integrity of the SEC’s enforcement actions against cryptocurrency exchanges. In the ongoing SEC vs. Ripple lawsuit, allegations of staging have been made, but the involvement of pro-XRP lawyer John E. Deaton and XRP investors demonstrate the authenticity of the case. Critics within the crypto community question Ripple’s involvement in fintech events despite being sued by the SEC, while others defend it as a driver of institutional adoption of digital assets.
