Stuart Alderoty Says SEC Is Trying To ‘Political Power Grab’ Crypto Market At Investor’s Expense

Ripple’s general counsel has slammed the SEC again.

The Securities and Exchange Commission (SEC) and its chair, Gary Gensler, have continued to be criticized by top cryptocurrency stakeholders, especially those affiliated with Ripple. 

In a recent tweet, Stuart Alderoty, Ripple’s General Counsel, has once again slammed the Securities and Exchange Commission for its “political power grab” quest over the cryptocurrency sector. 

Gensler’s Recent Statement Stirs Alderoty

Alderoty’s comment is in response to Gensler’s speech at a recent industry conference, where the SEC Chair rejected the idea that specific rules should regulate crypto assets. 

Gensler noted that the agency would continue to apply the same rules for the traditional financial industry to the emerging market even though the crypto community is against such a move.

Additionally, Gensler said he would give Congress the necessary support to delegate more regulatory powers to the Commodity Futures Trading Commission (CFTC) over Bitcoin and other non-security tokens. 

However, he would not support any decision that would take power away from the SEC. Recall that Gensler previously said he only considers Bitcoin as the cryptocurrency outside the SEC’s jurisdiction, thus mounting pressure on other crypto assets. 

Alderoty Lambasts Gensler

Gensler’s recent speech did not sit well with Alderoty, who described the statement as a political power grab at the expense of United States cryptocurrency investors. 

“Make no mistake, this is a political power grab (it’s not the law, and it’s not good policy), and it’s at your expense,” Alderoty said in a tweet. 

Alderoty further supported his assertion by citing a famous quote from Joseph P. Kennedy, the former United States Ambassador to the United Kingdom.

Another famous quote from Joseph Kennedy: "I wanted power. I thought money would give me power and so I made money, only to discover that it was politics–not money–that really gave a man power." https://t.co/qZXQaiqlkY

— Stuart Alderoty (@s_alderoty) September 8, 2022

Crypto Stakeholders Criticize SEC’s Regulatory Policies

It is gradually becoming a routine to see the SEC face criticism from aggrieved cryptocurrency investors, who believe the agency’s stringent approach in the crypto space can impede the sector’s growth.

Based on the SEC’s stringent policies, crypto stakeholders have thrown their weight behind the CFTC to become the industry’s regulator. Aside from Bitcoin, the SEC is not willing to allow the CFTC to take control over other digital currencies.