Stuart Alderoty stated that SEC is pressurizing the crypto market regularly.
There is an urgent need for responsible crypto legislation in Washington, as per Alderoty.
Ripple’s General Counsel, Stuart Alderoty, recently criticized U.S Securities and Exchange Commission (SEC) for its viewpoint on cryptocurrency regulation. According to Alderoty, the SEC is threatening crypto markets with its recent court filings, which are disguised as regulation.
In a blog post, Alderoty stated:
Rather than provide regulatory clarity through rulemaking, the SEC seeks to bully the market by filing or threatening to file enforcement cases. Unproven allegations masquerading as regulation is bad policy that hurts consumers and markets who are whipsawed by the whims of an unchecked regulator.
Also, he mentioned the SEC’s current legal action against Ripple as an example, and Alderoty emphasizes the urgent need for responsible crypto legislation in Washington, D.C.
SEC Continues to Chase the Crypto Sector
Last week, at the hearing of the SEC’s Enforcement Division, the US Congressman, Brad Sherman expressed that Ripple’s native token, XRP, is security. He also prompted the commission to pursue cryptocurrency exchanges that enabled XRP trading in the U.S. Following this, Ripple CEO, Brad Garlinghouse pointed out that the court only has the control to classify XRP as a security.
SEC is continuously looking for strict regulation in the cryptocurrency industry. Recently, the regulatory body claimed that nine of the tokens listed on the Coinbase crypto exchange are securities after charging a former employee of the trading platform in an insider trading case. But the exchange has denied their statement.
Additionally, US Congressman Tom Emmer slammed the SEC and its Chairman, Gary Gensler for taking action against crypto firms that were not under its jurisdiction. As per Tom Emmer, under Gary Gensler’s rule, the SEC has become a power-hungry regulator which unnecessarily controls corporations and also discourages good-faith collaboration.