Ripple’s Stuart Alderoty launches call to action against SEC on Crypto
“Time for the industry to lock arms and defend this overreach together.”
In a call to action for the whole crypto industry to work together and fight the Securities and Exchange Commission and its “overreach”, Ripple General Counsel Stuart Alderoty went to Twitter and shared the SEC’s argument in the LBRY case: “Even if a fraction of people” buy a token for “investment purposes, you’re in securities land.”
Ripple’s Alderoty then criticized that stance – using gold products as an example – and the SEC’s regulation by enforcement practice.
“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?!”, he tweeted.
“The SEC keeps relegating the CFTC to the kids’ table. That’s their regulation by enforcement strategy – attack projects [with] varying resources so they can expand their jurisdiction beyond “securities” by telling judges [with a] straight face we’re the government so we must be right”, he continued, adding, “Time for the industry to lock arms and defend this overreach together.”
Crypto firms fight against succumbing to SEC jurisdiction
Stuart Alderoty has shared his thoughts on Twitter earlier this month to comment on SEC Chair Gary Gensler’s video about the agency’s regulatory position in the crypto industry.
“I would rethink the “logic” of saying that crypto markets have to succumb to SEC jurisdiction, [because] that’s like saying drivers of electric cars don’t need seatbelts. It’s actually more like punishing electric car drivers [because] they don’t use SEC-owned and controlled gas stations.
The abovementioned video is shared here below.
We have rules in our capital markets to safeguard market integrity & protect against fraud & manipulation. If a company builds a crypto market that protects investors & meets the standard of our market regulations, people will more likely have greater confidence in that market. pic.twitter.com/ZxdBfvmqXP
— Gary Gensler (@GaryGensler) July 28, 2022
SEC tried to ban John Deaton from XRP lawsuit
In the meantime, the SEC failed its attempt to ban John Deaton, representing amici XRP Holders, from the SEC v. Ripple case. The plaintiff complained Deaton and his team mischaracterized its claims and that the agency may seek further relief from the court in light of Deaton’s and his followers’ recent conduct.
Following John Deaton’s reply, the court denied the SEC’s motion, but won’t allow XRP holders to participate in the expert challenge. Instead, the amici will be able to apply to brief concerns with SEC’s expert at summary judgment.