According to Ripple's general counsel, Stuart Alderoty, Ripple's defense against the SEC lawsuit may be crypto's best chance for regulatory clarity. Ripple has so far incurred more than $100 million in legal charges in its defense of the ongoing lawsuit filed by the SEC.
Alderoty has often called out what he terms an overreach by the SEC, stating that SEC Chair Gary Gensler has adopted an aggressive regulatory stance instead of collaborating with other regulatory agencies.
Alderoty also stated that the regulator wants to leave consumers "holding the bag" instead of protecting them. Gensler, who was confirmed as the SEC's new chairman in April, often states that he believes a vast majority of cryptocurrencies are securities.
The SEC chair repeated his stance on CNBC's Squawk Box recently, stating, "The law is clear on this. I believe, based on the facts and circumstances, most of these tokens are securities." Gensler further added, "When a group of entrepreneurs is raising money from the public and they're anticipating a profit, they need disclosure."
As reported by U.Today, Stuart Alderoty, general counsel at Ripple, criticized the SEC chair after the latter misstated that the Supreme Court test is set to determine whether or not a token is unregistered security.
In recent updates, Ripple responded to the U.S. Securities and Exchange Commission's attempts to prevent two firms from filing amicus briefs in the case. The SEC asked District Judge Analisa Torres to deny the requests of TapJets Inc. and I-Remit Inc. to submit briefs in support of Ripple.