General counsel for Ripple, Stuart Alderoty has stated in an opinion piece that the U.S. Securities and Exchange Commission is “bullying” the cryptocurrency markets by filing unproven allegations masquerading as regulations. Mr. Alderoty has called for an urgent need for sensible legislation to come from Washington.
General counsel for Ripple has called the SEC out for “bullying” the crypto markets through its recent court filings, which he says is masquerading as regulation. In a piece called “Halting the SEC’s Regulatory Attack on Crypto,” he says that the SEC is not proving regulatory clarity through its rulemakings. Instead, the regulatory body opts to “bully the market by filing, or threatening to file, enforcement cases.” He continues to add that such court cases have the potential to ruin the crypto industry and hurt the U.S.’s position as the global leader in innovation. Alderoty says,
Unproven allegations masquerading as regulation is bad policy that hurts consumers and markets who are whipsawed by the whims of an unchecked regulator. As a result, American innovation — and the jobs created — are fleeing the U.S.
There Is an Urgent Need From Washington For Clear Regulations
Alderoty cites the ongoing lawsuit between the SEC and Ripple as a prime example of the failings of the SEC. He explains that last year, a judge expressed that “XRP is no more a security after the SEC filed the enforcement action than it was before it.”
Counsel has called upon lawmakers in Washington and said,
This is all precisely why Congress needs to fix this mess and provide a comprehensive legislative framework for crypto.
Two bipartisan proposals (the Digital Commodity Exchange Act and the Responsible Financial Innovation Act) that seek to define the line between securities and commodities in the digital asset space are a good start.
The Wall Street Journal said it best last week when it urged Congress to “exercise its oversight authority over the SEC by demanding that Mr. Gensler halt his high-speed regulatory attack.”
SEC Sets its Sights Elsewhere
As if the debacle surrounding its lawsuit against Ripple is not enough, the Sec has now set its sights on Coinbase after a former product manager at the exchange was charged with insider trading and wire fraud. In a similar vein to its issues with Ripple, the SEC also claims that Coinbase listed nine digital assets that fit the description of securities. Coinbase has refuted all allegations that it has ever listed securities and has clearly stated that securities fall under the purview of the SEC. However true or not the allegations by SEC are, the pending clash could increase fear in an already volatile crypto market.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.