Ripple’s general counsel has urged U.S. lawmakers to pass “sensible crypto legislation” amid a Securities and Exchange Commission (SEC) lawsuit over the sale of xrp. “Rather than providing regulatory clarity through rulemaking, the SEC is bullying crypto markets by filing unproven allegations masquerading as regulation,” he opined.
Ripple’s Counsel Calls for ‘Sensible’ Crypto Regulation
Stuart Alderoty was Ripple’s general counsel and stressed the need for sensible legislation regarding cryptocurrency in an opinion article published Wednesday.
Alderoty referred back to a House Financial Services Subcommittee hearing about Investor Protection in which Congressman Brad Sherman, D-CA, pressed the SEC (the SEC) to pursue major cryptocurrency exchanges that trade XRP.
Sherman’s off-base remarks underscore the urgent need for sensible crypto legislation from Washington.
In December 2020, the SEC filed a lawsuit against Ripple Labs CEO Brad Garlinghouse and Chris Larsen, claiming that the XRP sales were unregistered securities offerings. Ripple Labs disagreed and is now fighting with the Securities Regulator. Garlinghouse has been discussing possible results of the suit.
Alderoty quoted Rep. Sherman stating that “the fact remains” that “XRP … clearly is a security.” However, the Ripple counsel argued that “the real fact” is:
It does not matter if a lawsuit is filed.
Noting that the lawmaker is a Harvard-trained lawyer, Alderoty alleged: “He knows that the SEC can’t determine XRP to be a security. He also knows that XRP is not considered a security in any other country. He knows the issue needs to be decided in the court.” Whether XRP is a security or not has yet to be determined, the Ripple counsel explained, adding that “when it is made, it will be made by the court.”
Alderoty has criticised the SEC over its regulation of the crypto sector, particularly the way the Securities Watchdog handled the Ripple lawsuit as well as its executive officers regarding the sale XRP.
He tweeted Wednesday:
The SEC, instead of providing clarity regulatory through rulemaking is bullying crypto markets by making unproven claims masquerading regulation.
Do you think the U.S. congress will pass sensible crypto legislation that will help Ripple’s case? Comment below to let us know your thoughts.
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