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Ripple General Counsel Slams SEC Chief Over Anti-Crypto Stance

Legal

coinedition.com 14 February 2023 10:52, UTC
  
Reading time: ~2 m

Ripple’s chief legal officer, Stuart Alderoty, recently slammed Gary Gensler, the United States Securities and Exchange Commission (SEC) chairman, suggesting that Gensler may be a problem for Vice President Joe Biden. The tweet highlights the demographic diversity of the nearly 40 million Americans who possess cryptocurrency, highlighting that many of them are young adults ( ages 18-34) of various ethnicities.

Considering these numbers, Alderoty stated that he sees Gensler as a political risk due to his nomination by President Joe Biden in 2021. The SEC Chair, according to him, represents a political risk for the Biden Administration, as the millions of crypto enthusiasts who feel wronged by the agency’s actions will never again support a candidate who advocates so harshly against the cryptocurrency sector.

These remarks are in response to the SEC’s enforcement action against the cryptocurrency exchange Kraken. Gensler has issued a “take note” warning to other platforms, telling them to learn from Kraken’s decision to halt its staking services from the nation and pay a $30 million fine.

Recent comments made by Gensler on CNBC’s “Squawk Box” indicate that organizations like Kraken are permitted to provide investment contracts and schemes, provided that investors are given complete, fair, and honest information about the company. Gensler advised that companies providing staking services become in line with regulations by making all required disclosures and registering as required.

Hester Peirce, a member of the SEC, criticized the decision as “paternalistic” and “lazy.” She continued by saying that the regulator’s response to a violation of registration requirements was to completely end a program that had served people well.

Meanwhile, Gensler has explained that the regulator is “technology neutral,” and it is using all possible tactics to assure compliance, including communicating directly with market participants. However, the reaction from the crypto community was not favorable despite Gensler’s attempts to explain the reasoning for the move.

Many crypto supporters have demanded Gensler step down, claiming the SEC’s enforcement measures have failed to safeguard investors while he has been in charge. Democratic U.S. Senator John Hickenlooper wrote a letter of criticism to Gensler in October, critiquing the agency’s stance toward crypto regulations.


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