Ripple CLO Blasts SEC’s Costly Enforcement Actions

• Ripple CLO Stuart Alderoty questions SEC’s use of taxpayer money in failed enforcement actions.
• Ripple leaders criticize SEC’s regulatory approach to the cryptocurrency sector.

Chief Legal Officer (CLO) of Ripple Stuart Alderoty has voiced serious concerns over the significant tax losses brought about by enforcement actions taken by the US Securities and Exchange Commission (SEC). In its regulatory endeavors, he accused the SEC of abusing government funds.

I am once again asking how many tax dollars have been wasted through failed efforts by Gensler’s SEC to expand its jurisdiction beyond what the law allows? pic.twitter.com/j3TUJ2NYSK

— Stuart Alderoty (@s_alderoty) June 6, 2024

Ripple CLO Triggers Fresh Criticism Wave 

“I am once again asking how many tax dollars have been wasted through failed attempts by Gensler’s SEC to expand its jurisdiction beyond what the law allows?” Alderoty questioned on his X account. With Gary Gensler leading the way, the SEC’s strategy to regulating the cryptocurrency industry is coming under increasing fire.

Alderoty based his question on a major Fifth Circuit ruling dated June 5. The SEC had asked private fund investors to make thorough disclosures, but the court overturned that request. Should the SEC have won, artificial intelligence, cryptocurrency assets, and other market segments would have been greatly impacted.

The Ripple CLO made his remarks at a period of market volatility for XRP, the cryptocurrency linked to Ripple. As per CoinMarketCap, XRP is now valued at around $0.5218, down 0.94% over the previous day. With a 0.15% rise over the last week.

Calls for Gensler’s Removal 

After President Joe Biden seemed to be supportive of cryptocurrency, Ripple Labs Inc. CEO Brad Garlinghouse demanded that SEC Chairman Gary Gensler be fired. On X, Garlinghouse launched a “Fire Gensler” discussion that attracted both strong support and condemnation, with some seeing it as undemocratic.

Complementing this story, CNF reports that Ripple President Monica Long previously questioned the SEC’s stance toward the cryptocurrency sector at the Money20/20 conference in Amsterdam.