Stu Alderoty, general counsel at Ripple, took aim at the U.S. Securities and Exchange Commission in a recent letter published by the Wall Street Journal.
Alderoty argues that the formidable regulator wants to leave consumers “holding the bag” instead of protecting them. He claims that SEC Chair Gary Gensler has adopted an aggressive regulatory stance instead of collaborating with other regulatory agencies.
Gensler, who was confirmed as the SEC’s new chairman in April, has repeatedly demonstrated his get-tough approach to cryptocurrencies. The former Goldman Sachs believes that the vast majority of existing tokens are unregistered securities, which is why there is an urgent need for investor protection. He has also vowed to hold accountable those crypto platforms that fail to implement safeguards for their customers.
As reported by U.Today, a recent Senate bill that wants to make the Commodity Futures Trading Commission (CFTC) the primary crypto regulator has attracted criticism from Gensler. The SEC believes that the legislation, which aims to defang his agency, will undermine wider crypto markets.
Earlier this year, Gensler published an op-ed in the Wall Street Journal, in which he claims that cryptocurrencies should not be allowed to flout existing securities laws just because they use different technology. He pointed to the fact that modern cars continue to use seatbelts despite advances in the industry.
However, Alderoty pushed back against this analogy, arguing that the SEC is selling gasoline for electric cars. Ripple’s general counsel has urged the agency not to swing its “billy club” and bring more regulatory clarity.