Ripple’s lawyer criticizes SEC about crypto
Ripple general counsel Stu Alderoty has criticized the U.S. Securities and Exchange Commission (SEC) for trying to pressure cryptocurrency innovation in the United States with the aim of expanding its own territorial management.
“The SEC is intent on hindering cryptocurrency innovation in the United States by taking practical actions and threats, which are all aimed at unacceptably expanding its own legal limits.” Ripple’s general counsel said.
On June 13 in the lawsuit that took place between Ripple and the regulator, Alderoty voiced his views. According to him shared in his speech part of the “SEC’s attack on all cryptocurrencies in the United States” is like treating cryptocurrencies as a collateral.
“If your head is like a hammer then everything under your eyes will be like a nail, the SEC is holding and making things worse so that it can argue that every cryptocurrency is a guarantee,” Aldertoty said in his speech.
Ripple Labs and the SEC have been embroiled in a legal battle
Starting in May 2020, Ripple Labs and the SEC have been embroiled in a legal battle. At the time, when the securities regulator filed a lawsuit with the aim of accusing Ripple executives of using the Ripple token (XRP) to raise funds for the company since 2013 and claiming that it was an unregistered collateral.
Ripple fought back and claimed in Robert Hinman’s 2018 speech. Then the SEC’s Corporate Chief Financial Officer, classified Ether (ETH), Bitcoin (BTC), affiliates, XRP, as unsecured due to its “full decentralization.”
Ripple countered that the speech contradicted the SEC’s statement on Ripple and the XRP token, but the SEC countered that argument by claiming the speech was the director’s personal view and not the regulator’s official position. This is an important factor in the direct causes of the lawsuit between Ripple and the SEC.
Ripple recognized the contradiction in the SEC’s statement on Ripple and the XRP token. However, the SEC hit back and claimed it was the director’s personal view that was not the regulator’s official view. This attitude is one of the most important factors in the lawsuit between Ripple and the SEC.
“Hinman’s speech confirmed that XRP is a cryptocurrency that doesn’t need permission for a commodity or a virtual currency, and that it exists on the open decentralized blockchain ledger. So this is definitely not a guarantee,” Alderoty said in the speech.
Alderoty has talked about how the SEC’s image was intentionally causing the turmoil of regulated waters for cryptocurrencies.
>>> Related: Ripple CEO Says United States Is Behind Other G20 Countries Due To Lack Of Crypto Regulations
