Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Ripple’s Chief Legal Officer Criticizes SEC Regarding Cryptocurrency Oversight and XRP Litigation: “Step Down from Your Soap Box”
The ongoing dispute between Ripple Labs and the SEC regarding the XRP lawsuit escalated on Wednesday, as Ripple’s Chief Legal Officer Stuart Alderoty accused the SEC of not providing clear directives for cryptocurrency regulation.
This remark was made in reaction to SEC Director of Enforcement Gurbir Grewal’s speech on Tuesday, which referenced the protracted XRP lawsuit.
Ripple Attorney Asserts SEC Must Acknowledge Its Stance on Crypto
In his comments at the Practicing Law Institute, where he criticized the crypto industry’s non-compliance with regulatory bodies, Alderoty contended that Grewal’s statements did not accurately reflect the regulatory environment.
In a series of posts on X, Alderoty asserted that the SEC has not delivered “clear crypto guidance” while whimsically altering “factors from the Howey test.”
Dir. Grewal claims the crypto enforcement unit operates with integrity, yet overlooks the DebtBox sanctions for “gross abuse of power,” the Ripple Judge’s criticism for lack of “faithful allegiance to the law,” and the “arbitrary and capricious” ruling in the Grayscale case. https://t.co/rZnaumdBOd
— Stuart Alderoty (@s_alderoty) April 3, 2024
Formulated by the U.S. Supreme Court in 1946, the Howey test serves as a legal standard to determine what constitutes an investment contract (or security) and has been central to significant regulatory discussions concerning the cryptocurrency industry.
On Tuesday, Grewal appeared to commend the SEC’s implementation of the Howey test, asserting that “the SEC has clearly and consistently applied Howey and its progeny to safeguard investors in the crypto sector.”
“If this Agency genuinely wishes to mend the institutional harm caused (both to itself and the industry) over the past several years in this misguided conflict against crypto, it must step down from its pedestal and acknowledge these realities,” Alderoty responded.
Related Posts
SEC and Ripple Clash Over Crypto Regulation Following XRP Lawsuit
Alderoty targeted Grewal’s remarks in another post on X, particularly concerning the SEC’s prolonged legal battle against Ripple regarding its cryptocurrency token, XRP.
“On the substance, he references one aspect of the Ripple ruling but overlooks that the SEC lost or abandoned most of its claims in the case, including the Court’s dismissal of the SEC’s argument that XRP was inherently a security,” Alderoty pointed out.
The SEC initially initiated the contentious lawsuit against Ripple in late 2020, alleging that the crypto exchange violated the law by offering unregistered securities.
Ripple achieved a partial victory in the case last year, with U.S. District Court Judge Analisa Torres determining that the SEC’s claim of unregistered securities was incorrect.
However, Torres found the crypto exchange liable for violating security laws by selling XRP to several institutional purchasers.
Grewal referenced the XRP lawsuit in his address, asserting that “court after court has confirmed” that “federal securities laws apply equally to everyone.”
“You don’t get your own rules,” he added.
Ripple and the SEC are scheduled to confront each other in a trial later this month regarding the classification of XRP as a security.
The post Ripple’s Chief Legal Officer Criticizes SEC Over Crypto Regulation, XRP Lawsuit: “Get Off Your Soap Box” appeared first on Cryptonews.
