Ripple’s General Counsel Urges Crypto Enthusiasts to Fight Against the SEC’s Regulatory “Overreach.”
Stuart Alderoty, Ripple’s General Counsel, has again slammed the Securities and Exchange Commission (SEC) for its quest to control the entire crypto market.
The General Counsel at Ripple was angered by a comment made by the SEC during the LBRY lawsuit. The SEC said: “Even if a fraction of people buy a token for investment purposes, you’re in securities land.”
Alderoty faulted the SEC for making such comments, saying: “Does every jeweler now book a one-way ticket to ‘securities land’ because a ‘fraction’ of their customers are ‘investing’ in the oldest commodity – gold?!”
The SEC argued in LBRY: "Even if a fraction of people" buy a token for "investment purposes, you’re in securities land." Does every jeweler now book a one way ticket to "securities land" because a "fraction" of their customers are “investing” in the oldest commodity – gold?! 1/3
— Stuart Alderoty (@s_alderoty) August 3, 2022
Alderoty: SEC Relegating CFTC to the Kid’s Table
He blasted the SEC for continuously adopting the regulation by enforcement strategy in its effort to seize control of the entire crypto market.
According to the Ripple Counsel, the unfair strategy adopted by the SEC has helped the agency to relegate the Commodities Futures Trading Commission (CFTC) to the “kid’s table.”
Alderoty said the SEC is abusing its privilege as a government agency by constantly attacking projects with varying resources in a bid to expand its jurisdiction beyond securities.
The Securities and Exchange Commission tries to extend its jurisdiction beyond securities by “telling judges with a straight face that we are the government, so we must be right,” Alderoty added.
As The Crypto Basic reports, “a new crypto bill authored by Democratic Senator Debbie Stabenow and Republican Senator John Boozman identifies Bitcoin and Ethereum as commodities and places the Commodity Futures Trading Commission (CFTC) in charge of the supervision of both assets.”
Alderoty further said that the crypto industry should work together to defend itself against SEC.
“Time for the industry to lock arms and defend this overreach together.”
Ripple’s General Counsel concluded by making a clarion call to crypto-related enthusiasts to join forces together to “defend the SEC’s overreach.”
Attorney James K. Filan, a former federal prosecutor, also shared the development on Twitter.
— James K. Filan 🇺🇸🇮🇪 107k (beware of imposters) (@FilanLaw) August 3, 2022
SEC’s Effort to Control the Entire Crypto Market
Meanwhile, the SEC has come under heavy scrutiny for trying to take control of the entire cryptocurrency market. Aside from Bitcoin (BTC), the SEC considers other cryptocurrencies as securities and has already started clamping down on several digital currencies.
In December 2020, the SEC charged Ripple and two of its executives, Brad Garlinghouse and Chris Larsen, for allegedly offering unregistered securities.
While many expected Ripple to settle with the SEC, the blockchain company chose to proceed with the lawsuit to push for clearer crypto regulation.
The lawsuit has been ongoing for more than a year, with investors hoping that the case will be concluded on or before March 31, 2023. Alderoty considers Ripple lawsuit a rug pull on XRP investors.