Ripple counsel slams SEC for trying to bulldoze and bankrupt crypto

Diagram, logo, schematic Altcoin

Ripple counsel slams SEC for trying to bulldoze and bankrupt crypto

“Like a hammer wanting everything to be a nail, the SEC is keeping everything murky so it can argue every crypto is a security,” claims Ripple general counsel Stu Alderoty.

Ripple general counsel Stu Alderoty has slammed the United States Securities and Exchange Commission (SEC) for trying to “bully, bulldoze, and bankrupt” crypto innovation in the U.S. in the name of expanding its own regulatory territory:

“Despite disclaimers that the speech was Hinman’s personal opinion and ‘not necessarily that of the Commission,” the market took Hinman’s speech to heart,” wrote Alderoty.

“For Ripple, Hinman’s speech affirmed the conclusion that XRP — a cryptocurrency that exists on an open, permissionless, decentralized blockchain ledger — was a commodity and/or a virtual currency. Certainly not a security,” he added.

Alderoty said the speech epitomized SEC’s deliberate muddying of the regulatory waters for crypto:

“Here in the U.S., the Securities and Exchange Commission (SEC) has deliberately muddied the regulatory waters for crypto […] To unlock crypto’s true potential, we need to finally clean up this regulatory sludge.”

During a Washington Post event on June 8, United States Senators Kirsten Gillibrand agreed that most cryptocurrencies would likely be classed as securities under the Howey Test, with the obvious exception of Bitcoin and Ether.

Rostin Behnam, chair of the Commodity Futures Trading Commission (CTFC), took a slightly different view, saying that while there are “probably hundreds” of coins that replicate security coins, there are also many commodity coins, such as BTC and ETH, that would be regulated by his commission.

The court battle between Ripple and SEC is expected to set a precedent for the treatment of cryptocurrencies, particularly altcoins under U.S. securities and commodities laws.

Rate article
( No ratings yet )