Ripple Attorney Slams Gary Gensler Over SEC’s Quest to Control the Entire Cryptocurrency Market 

Crypto experts are unhappy with the SEC’s continuous lack of regulatory clarity for the crypto sector.  

There has been widespread outrage over the recent video made by Gary Gensler, the Chairman of the Securities and Exchange Commission (SEC).

While crypto markets may offer new ways for entrepreneurs to raise capital & for investors to trade, we all still need investor & market protections.

Let’s not risk undermining 90 years of securities laws & create some regulatory arbitrage or loopholes. pic.twitter.com/E1Z8WJnePm

— Gary Gensler (@GaryGensler) May 24, 2022

Gensler recently urged all crypto-related projects to register with the agency as part of efforts to protect U.S. investors from the associated risks of the asset class.

He noted that the fact that technologies evolve does not mean its policy should change because of digital currencies.

“There is no need to treat the crypto market differently just because different technology is used,” Gensler was quoted as saying in the video.

Reactions to Gensler’s Comments

However, the video currently circulating on the internet struck the wrong nerves for cryptocurrency players who feel the SEC chief is trying to take control over the entire crypto market without clearly providing guidelines for the nascent industry.

Attorney Stuart Alderoty, the General Counsel of blockchain company Ripple, is one of the people who slammed the Securities and Exchange Commission for its recent video.

According to attorney Alderoty, while there is a need for consumer and market protection, the SEC’s quest to group all digital currencies under its regulatory oversight is a combination of bad policy and law.

Ripple’s general counsel added that in contrast to what the SEC believes, its jurisdiction in the cryptocurrency market is not limitless because there are other regulatory agencies in the United States that are supposed to oversee some cryptocurrencies.

We all agree that consumer and market protections are needed. But saying that every token besides BTC (maybe) is a security is a combination of bad law and bad policy all in the name of the SEC’s political land grab over this asset class. The SEC’s jurisdiction is not limitless. https://t.co/PdBtltgsxG

— Stuart Alderoty (@s_alderoty) May 24, 2022

In a similar development, attorney John Deaton, who recently requested approval to represent over 67,000 XRP holders in the SEC v. Ripple lawsuit, does not seem happy about the recent video made by the SEC chair.

Explaining his understanding of the video, Deaton said the SEC chair wants the entire cryptocurrency market to be left under the agency’s regulatory oversight.

However, the SEC has refused to provide clearer regulation for the asset class just as other countries had done in the past.

“He prefers regulatory uncertainty and vagueness, which will allow regulation through enforcement to continue,” attorney Deaton added.

He’s basically saying leave everything to him and not provide guidance or do anything similar to what the U.K.’s FCA or Japan’s FSA have done. He prefers regulatory uncertainty and vagueness which will allow regulation through enforcement to continue. https://t.co/LiQCujd7ek

— John E Deaton (@JohnEDeaton1) May 24, 2022

Also reacting to the Gensler video is LBRY, a company that is currently facing legal action against the Securities and Exchange Commission for allegedly breaching U.S. securities laws.

Gary: the rules are clear

Blockchain industry: can we read them?

Gary: no

Industry: can you give us any hints?

Gary: no

Industry: *guesses at rules*

Gary: you guessed wrong, go to jail

— LBRY ? (@LBRYcom) May 24, 2022

Calls for Regulatory Clarity 

For a long time, the cryptocurrency community has called on U.S. regulators to provide clearer regulations for the industry. However, the relevant authorities have not heeded these calls.

Although President Joe Biden issued an executive order in March 2022 for the nascent asset class, no significant effort has been made toward that effect.

The SEC has been fighting relentlessly to seize control of the entire cryptocurrency sector while ignoring the Commodity Futures Trading Commission (CFTC), an agency that is supposed to be involved in crypto regulatory matters based on its function.

While a larger portion of crypto projects prefer to be regulated by the CFTC, the SEC is not giving any room for such to happen.

The calls have still not changed. If the SEC wants to take over the entire cryptocurrency market, it should as well provide clearer regulations for the sector.