Ripple advisor: SEC shakeups keep consumers in the bag

Ripple Labs General Counsel Stu Alderoty responded to a recent opinion piece from Gary Gensler, head of the Security and Exchange Commission, arguing that the regulator’s jolts in the crypto market do not protect consumers.

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In an opinion piece titled “The Security and Exchange Commission Wants to Be America’s Crypto Police,” published in the Wall Street Journal (WSJ) Aug. 28, Alderoty claims that the Securities and Exchange Commission  is “pushing regulators back” rather than focusing on providing regulatory clarity for crypto.

“Consumers weren’t protected, they were left holding the bag.”

The article came in response to Gensler’s article titled “SEC Is Treating Crypto Like The Rest Of The Stock Markets,” published in WSJ on Aug. 19, and defended the regulator’s crackdown on the crypto industry. He claims that the president is “pushing his regulatory friends aside” and is “preliminating” President Biden’s executive order asking regulators to cooperate on crypto regulation.

The executive order that Alderoty is referencing is “Ensuring Responsible Development in Digital Assets,” signed on March 9, 2022, to enable both the SEC and the Future Commodity Trading Commission (CFTC) to coordinate and cooperate in establishing a crypto regulatory framework.

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.However, Aldetory claims that the SEC neither complied with the executive order nor provided “regulatory clarity for crypto” and instead “protected its own space in the crypto economy at the expense of more than 40 million Americans.”In his article, Gensler argued that US federal security laws are designed to protect investors and that there is “no reason to treat the crypto market any differently than other capital markets because it uses a different technology.

” Earlier in the month, US Attorney General John Deaton claimed that this was foul, saying that Gensler and the SEC were deliberately targeting cryptocurrencies, exceeding the limit they can currently do to regulate crypto:

“It doesn’t take a constitutional law expert to understand that the SEC has limited jurisdiction over the crypto industry; barring congressional action, front line regulation of digital assets belongs with the Commodity Futures Trading Commission — the main regulator of investments that are not deemed traditional securities.”

About Hama Amefiz

Amefiz is a professional blockchain, cryptocurrency and tech journalist, regular contributor to newsbsc.com who is writing analysis about the latest developments in the cryptocurrency and blockchain space.

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