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Ripple General Counsel Calls SEC's Tactics "Bullying"

Thu, 07/28/2022 - 10:02
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Tomiwabold Olajide
Ripple general counsel slams SEC's approach as "bullying"
Ripple General Counsel Calls SEC's Tactics "Bullying"
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Ripple General Counsel Stuart Alderoty has slammed the SEC's approach as "bullying" while highlighting the urgent need for "sensible" crypto regulation from the U.S.

In his latest op-ed, Alderoty referred back to Rep. Sherman's "off-base" remarks during an oversight hearing focused on the Securities and Exchange Commission's (SEC) enforcement division held last week by the House Financial Services Subcommittee.

He writes: "Despite the norm that ongoing enforcement cases are not discussed at these hearings, Subcommittee Chairman Representative Brad Sherman  took it upon himself to put his thumb on the scale of the largest enforcement case in crypto: SEC vs. Ripple."

Alderoty continues: "Rep. Sherman's behavior highlights the pernicious effect of regulation by enforcement." Rather than provide regulatory clarity through rulemaking, the SEC seeks to bully the market by filing, or threatening to file, enforcement cases. Unproven allegations masquerading as regulation is bad policy that hurts consumers and markets who are whipsawed by the whims of an unchecked regulator."

He says there is an urgent need for Congress to fix the "mess" and provide a comprehensive legislative framework for crypto. The Ripple General counsel noted that the two bipartisan proposals, the Digital Commodity Exchange Act and the Responsible Financial Innovation Act that aim to create a distinction between securities and commodities in the cryptocurrency industry, are a good start.

Ripple CEO Brad Garlinghouse also commented in support of general counsel Alderoty's observations.

Another call for regulatory clarity

Ripple General Counsel Stuart Alderoty also commended former Rep. Todd Tiahrt's call on Congress to fix the "mess" caused by the absence of regulatory clarity. Todd Tiahrt wrote: "The SEC has manipulated the absence of regulatory clarity of blockchain technology to justify going beyond its authority."

Tiahrt continued, "The SEC's biggest crypto lawsuit to date, for example, is the non-fraud lawsuit filed in December 2020 against Ripple Labs, noting that it turned out to be a miscalculation by the SEC" given Ripple’s size and the soundness of its legal team."

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.