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.
Rather than providing regulatory clarity through rulemaking, the SEC is bullying crypto markets by filing unproven allegations masquerading as regulation. In my latest op-ed, I outline the urgent need for sensible crypto legislation from Washington. https://t.co/BiY5rkCdEM— Stuart Alderoty (@s_alderoty) July 27, 2022
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.
FACTS https://t.co/fQPjPNWbri— Brad Garlinghouse (@bgarlinghouse) July 27, 2022
Ripple CEO Brad Garlinghouse also commented in support of general counsel Alderoty's observations.
Another call for regulatory clarity
Great insight from former Rep. Todd Tiahrt in @realclearpolicy - "The @SEC has manipulated the absence of regulatory clarity of blockchain technology to justify going beyond its authority." https://t.co/8esHUIcHhk— Stuart Alderoty (@s_alderoty) July 26, 2022
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."