Ripple general counsel reacts to SEC chair’s recent comments on regulation
In a recent interview CNBC “Squawk Box,” said US Securities and Exchange Commission chairman Gary Gensler, adding that crypto investors need better protection in a space that is “considerably non-compliant” despite clear regulations.
The SEC chair stated this in light of the FTX implosion that occurred in the past week, with its rival Binance walking out on a bailout deal for the embattled crypto exchange.
Gensler has often suggested that the “Wild West” of crypto will require more active regulation. He suggested in September that crypto trading platforms register with the SEC and separate their operations into different legal entities to reduce conflicts of interest.
While the space is “non-compliant,” according to the SEC chair, the agency is taking another path – enforcement – which has yielded 100 class action lawsuits so far. He cites what he describes as a big win for the agency: the LBRY case. According to U.Today, Ripple ally LBRY lost its case against the SEC at the summary judgment stage.
Ripple’s General Counsel Responds
Stuart Alderotti, Ripple’s general counsel, is concerned about the latest remarks from SEC Chairman Gary Gensler. He says this is because the SEC chairman’s insistence on increasing the agency’s quest for power over effective regulation was causing deep financial damage.
The SEC chair, while calling for cooperation from crypto companies, stated, “The runway is running out. Investors around the globe are getting hurt.”
Aldrotti responded by saying, “Chair Gensler has repeatedly failed to really protect anyone but keeps raving about Kim Kardashian while lines are long for consumers in bankruptcy courts. This madness must be closed.”
