Stuart Alderoty reacts to SEC chair Gary Gensler’s recent interview, saying the “unelected bureaucrat” has admitted that he will not respect courts’ decisions.
Ripple’s chief legal officer, Stuart Alderoty, has expressed concern about recent statements made by Gary Gensler, the United States Securities and Exchange Commission (SEC) chairman.
Gensler Highlights Benefits of Applying Securities Law to Crypto
The Ripple CLO voiced his concerns following Gensler’s recent interview on Bloomberg TV. During the interview, Gensler highlighted the benefits of implementing existing securities laws in the crypto industry.
According to Gensler, applying securities laws to crypto would protect investors from fraud and manipulation.
“With the securities law, investors still benefit from disclosure and they get to choose based on that disclosure,” Gensler remarked. “Investors benefit from laws against fraud and manipulations, [as well as] other conflicts in the market.”
Following Gensler’s assertion, Bloomberg’s Francine Lacqua asked the SEC chair whether the courts could change his stance regarding crypto.
In response, Gensler said he wished the court would help “bring compliance [to crypto] sooner.”
Ripple CLO Reacts
Expectedly, Gensler’s remarks stirred reactions among crypto enthusiasts, including Alderoty. Per Alderoty, it is shocking that Gensler, whom he referred to as an unelected bureaucrat, has admitted that he will not respect courts’ decisions.
What’s most concerning to me (and should be to you) in the full video clip is the shocking admission of an unelected bureaucrat that he won't respect the decisions of the Courts. https://t.co/QD0pBDDvTF https://t.co/8cOOc2Z7tb
— Stuart Alderoty (@s_alderoty) September 21, 2023
Notably, Alderoty could be suggesting that Gensler is not planning to respect the court’s ruling in the Ripple case.
Recall that the SEC suffered a major defeat in its lawsuit against Ripple. The SEC alleged that Ripple violated federal laws by offering and selling XRP as an unregistered security.
However, the court rejected the claim, ruling that XRP itself is not a security. The court also ruled that most of Ripple’s XRP-related transactions, which the SEC alleged to be securities, are not.
The SEC has expressed dissatisfaction with the ruling and has asked the court to certify an interlocutory appeal to allow it to challenge the decision on Ripple’s programmatic sales and other distributions.
If the court approves the request, the SEC would also request permission for an interlocutory appeal from the Second Circuit.
However, if the court denies the request, the SEC will have to wait until all pending issues in the lawsuit have been resolved before it can file a full appeal. In this scenario, the SEC could file a full appeal toward the end of next year.