Stuart Alderoty, the Chief Legal Officer (CLO) of Ripple, has raised concerns about the Securities and Exchange Commission’s (SEC) mismanagement of taxpayer funds in failed enforcement actions. He criticized the regulatory approach of the SEC towards the cryptocurrency sector, accusing them of overstepping their legal boundaries and wasting government resources.
In a recent tweet, Alderoty questioned the amount of taxpayer money that has been squandered by the SEC under Gary Gensler’s leadership in attempting to expand its regulatory reach beyond what is permitted by law. This criticism comes in the wake of a major Fifth Circuit ruling on June 5, where the SEC’s request for detailed disclosures from private fund investors was overturned by the court. Had the SEC succeeded, it would have had far-reaching implications for artificial intelligence, cryptocurrency assets, and other market segments.
Alderoty’s comments come at a time of market volatility for XRP, the cryptocurrency associated with Ripple, which is currently valued at around $0.5218 according to CoinMarketCap. Calls for Gensler’s removal have been growing, particularly after President Joe Biden’s apparent support for the cryptocurrency industry. Ripple Labs Inc. CEO Brad Garlinghouse even launched a campaign on social media calling for Gensler’s dismissal, sparking a debate on the democratic process.
In a related development, Ripple President Monica Long also questioned the SEC’s approach to the cryptocurrency sector at a recent conference in Amsterdam. This ongoing scrutiny highlights the growing tensions between regulators and industry players in the cryptocurrency space.