Stuart Alderoty, the Chief Legal Officer (CLO) of Ripple, has raised concerns about the SEC’s misuse of taxpayer money in failed enforcement actions. In a recent tweet, Alderoty questioned the amount of tax dollars wasted by the SEC under Gary Gensler’s leadership as they try to extend their authority beyond legal limits.
Alderoty’s criticism comes amidst growing discontent with the SEC’s regulatory approach to the cryptocurrency industry. He pointed to a recent Fifth Circuit ruling that overturned the SEC’s request for private fund investors to disclose detailed information. If the SEC had succeeded, it could have had a significant impact on artificial intelligence, cryptocurrency assets, and other market sectors.
During a period of market volatility for XRP, Ripple’s cryptocurrency, Alderoty’s remarks have sparked fresh debate. XRP is currently valued at around $0.5218, representing a 0.94% decrease from the previous day but a 0.15% increase over the past week.
Following President Joe Biden’s apparent support for cryptocurrency, Ripple Labs Inc. CEO Brad Garlinghouse called for Gary Gensler’s removal as SEC Chairman. Garlinghouse initiated a “Fire Gensler” campaign on X, drawing both support and criticism, with some questioning the democratic nature of the move.
In a related development, Ripple President Monica Long also challenged the SEC’s approach to the cryptocurrency industry at the Money20/20 conference in Amsterdam. As tensions between Ripple and the SEC continue to escalate, the future regulatory landscape for cryptocurrencies remains uncertain.