The Ripple counsel accuses the SEC of themselves taking the role of the top cop while ignoring fellow regulators.
San Francisco-based blockchain startup Ripple has been engaged in a tough legal battle with the US Securities and Exchange Commission (SEC) over the sale of XRP as securities. While there have been ongoing court hearings on this, Ripple has responded to SEC’s fresh take on crypto regulations.
Earlier this month on August 20, SEC chief Gary Gensler published an article in Wall Street Journal wherein he noted that they would be treating cryptocurrencies like the rest of the capital markets. Gensler said that this year’s market crash makes it critical for crypto firms to comply with securities laws. Drawing an analogy with the automobile industry, Gensler noted:
“Whether a car runs on gasoline or electricity, drivers and passengers deserve to be protected. There’s no reason to treat the crypto market differently from the rest of the capital markets just because it uses a different technology.”
Ripple Counsel Responds
On Sunday, August 28, Ripple General Counsel Stu Alderoty responded to Gary Gensler’s take on crypto regulations. The Ripple counsel accuses the SEC of themselves taking the role of the top cop while ignoring fellow regulators.
Besides, the Counsel also accuses the SEC of front-running President Biden’s executive order wherein he asked all Federal agencies to collaborate on establishing regulatory frameworks for cryptocurrencies. In his response, Stu Alderoty wrote:
Mr. Gensler writes that whether a car runs on gas or electricity, you still need a seat belt. No one disputes that. But electric cars don’t need gas, and in his analogy, it is gas that the SEC is selling. Mr. Gensler looks to punish anyone who isn’t buying it.
The Ripple Counsel also pointed to SEC’s past actions on BlockFi. Alderoty added:
“BlockFi ended up on the auction block and two other companies with similar businesses went belly up. Consumers weren’t protected, they were left holding the bag. What we need is regulatory clarity for crypto, not the SEC swinging its billy club to protect its turf at the expense of the more than 40 million Americans in the crypto economy”.
Agencies across the world have been speeding up on crypto regulations and so is the US. With institutional participation growing in the crypto space, the importance of a regulatory framework is greater than ever before.
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