- Ripple’s Chief Legal Officer Stuart Alderoty criticized SEC Chairman Gary Gensler for comments made during a recent speech that seemed to contradict the SEC’s actions against crypto companies like Ripple.
- Alderoty accused the SEC and Gensler of prejudging and unfairly targeting crypto companies, despite Gensler claiming the SEC does not “prejudge” businesses.
- The wider crypto community agreed with Alderoty’s criticisms, arguing the SEC’s harsh approach has damaged innovation and investor confidence in crypto.
Ripple’s Chief Legal Officer Stuart Alderoty recently criticized SEC Chairman Gary Gensler for comments made during a speech at the 2023 Securities Enforcement Forum. Alderoty took issue with certain statements that seemed to contradict the SEC’s actions against crypto companies like Ripple.
Alderoty Highlights Perceived Hypocrisy in Gensler’s Speech
In a post on social media, Alderoty directly responded to Gensler’s remarks, arguing that the SEC is “losing in court” and “being criticized by Judges for shady behavior.” He accused the SEC of prejudging crypto companies like Ripple, despite Gensler’s claims that the SEC does not “prejudge” businesses.
Alderoty also compared Gensler to the fictional Colonel Jessep from A Few Good Men, implying the SEC boss was refusing to take responsibility for the agency’s questionable behavior. He argued Gensler needed to be “fact-checked” for claiming the SEC does not prejudge companies.
Wider Crypto Community Also Chimes In
The crypto community at large also took issue with Gensler’s speech. ShapeShift CEO Erik Voorhees noted the SEC has “literally prosecuted” his “honest business” twice, despite claims of not targeting honest crypto businesses.
Others argued the SEC’s harsh regulatory approach has reduced investor confidence and forced crypto firms to leave the US. They accused the SEC of seeking to maintain the status quo rather than foster innovation.
Overview of Gensler’s Controversial Remarks
In his speech, Gensler touted the SEC’s recent enforcement “wins” while calling for more scrutiny and regulation of the crypto space. He quoted a speech by Joseph Kennedy which claimed the SEC “shall not prejudge but we shall investigate.”
Gensler cited the SEC’s recovery of $5 billion in fines this year as evidence of its efforts to protect investors. However, his stance on not prejudging companies contradicted the experience of many crypto firms targeted by the SEC before proper investigations occurred.
Alderoty and others in crypto believe Gensler’s speech rings hollow given the SEC’s recent track record. The Ripple executive’s bold call-out of Gensler highlights the ongoing rift between the SEC and the crypto industry. With legal battles still ongoing, the SEC’s true intentions remain under scrutiny.