SEC's Unreasonable Actions: Ripple's Chief Legal Counsel Criticizes Childish Behavior in Regulating Crypto Assets

Ripple's chief legal counsel, Stuart Alderoty, has criticized the U.S. Securities and Exchange Commission (SEC) for its childish behavior in regulating crypto assets. Alderoty believes that the recent regulatory actions against Binance are a necessary step to bring the digital assets industry into compliance with important laws and safeguards.

SEC's Unreasonable Actions

However, Alderoty points out that the SEC's enforcement actions and its reaction to Binance's charges demonstrate the agency's unreasonable behavior compared to other regulators. While the Treasury, CFTC, and DOJ joined forces in the Binance deal, the SEC was noticeably absent. This sends a clear message that the SEC, under Gensler's leadership, has become an outlier both globally and within its own government.

Inventing New Terms

Alderoty also accuses the SEC of inventing new terms for crypto assets that have no technical meaning under the law and have not been recognized by other regulatory agencies. He highlights that the SEC's fabricated term 'crypto asset securities' is absent from the DOJ case against Binance because it holds no legal significance. The courts have consistently ruled that tokens themselves are not securities.

Takeaway

In conclusion, Ripple's chief legal counsel criticizes the SEC for its childish antics and unreasonable actions in regulating crypto assets. He emphasizes the importance of bringing the industry into compliance with laws and safeguards but questions the SEC's approach. Alderoty's remarks shed light on the need for fair and consistent regulation in the crypto space, based on established legal principles.