Ripple’s Chief Lawyer Roasts SEC, Offers Updated Logo

As a seasoned researcher with over two decades of experience in the financial sector, I’ve witnessed numerous regulatory evolutions. The latest developments surrounding the SEC and Ripple’s chief legal officer, Stuart Alderoty, have piqued my interest, and not without reason.


once more, the Securities and Exchange Commission (SEC) finds itself under scrutiny, this time due to Ripple‘s top legal officer, Stuart Alderoty, voicing concerns on social media about the agency’s unpredictable handling of cryptocurrency regulation. It is not unprecedented for the SEC to receive criticism within the digital currency community.

As an analyst, I find myself aligning with the apparent sentiment of many within the industry. Despite multiple enforcement actions taken, we’re yet to receive definitive regulatory guidelines that offer clarity on certain matters, which is undeniably frustrating.

Responding to the SEC’s recent reminder about various cryptocurrency swindles, Alderoty pointed out inconsistencies in the agency’s regulatory structure, particularly with regard to novel fraud tactics such as “pig butchering.

He pointed out that the regulator has been inconsistent in its use of the term “crypto asset security,” as it no longer uses this term in its most recent investor alert.

It seems that the Securities and Exchange Commission (SEC) is acknowledging that the term “crypto asset security” might not be accurate, and instead, they require evidence of a set of “contractual agreements, investor expectations, and mutual understandings” in order to classify a “crypto asset” as an investment contract.

— Stuart Alderoty (@s_alderoty) September 13, 2024

The SEC’s warnings, while serious, come at a time when the agency’s regulatory stances are also under fire for creating confusion rather than clarity.

Alderoty’s reply was particularly notable not only for its content, but also for the accompanying visuals. He creatively turned the regulator’s emblem into a pretzel, symbolizing his perspective that the agency’s regulatory stance is becoming progressively intricate.

After the Securities and Exchange Commission (SEC) reached a settlement with trading platform eToro, classifying Ethereum as a non-security, my analysis aligns with the escalating discussions surrounding the SEC’s inconsistency in categorizing cryptocurrencies. This decision further fuels the ongoing debates on this topic.

Read More

2024-09-13 12:54