Ripple’s Chief Legal Officer, Stuart Alderoty, has raised concerns about the misuse of taxpayer money by the US Securities and Exchange Commission (SEC) in failed enforcement actions. Alderoty criticized the SEC’s regulatory approach to the cryptocurrency industry, accusing them of overstepping their legal boundaries and wasting government funds.
In a recent tweet, Alderoty questioned the amount of tax dollars that have been squandered by the SEC under Gary Gensler’s leadership in their attempts to expand their jurisdiction beyond what is allowed by law. This criticism comes in the wake of a major Fifth Circuit ruling on June 5, where the SEC’s request for private fund investors to disclose detailed information was overturned by the court. Had the SEC been successful, it would have had a significant impact on artificial intelligence, cryptocurrency assets, and other market segments.
Alderoty’s comments come at a time of market volatility for XRP, Ripple’s associated cryptocurrency, which is currently valued at around $0.5218 according to CoinMarketCap. Calls for Gensler’s removal have intensified, with Ripple Labs Inc. CEO Brad Garlinghouse even demanding his dismissal after President Joe Biden’s apparent support for cryptocurrency. Garlinghouse’s “Fire Gensler” campaign on social media has sparked debate, with some viewing it as an attack on democratic principles.
In addition to Alderoty’s criticism, Ripple President Monica Long has also questioned the SEC’s approach to the cryptocurrency sector at a recent conference in Amsterdam. As tensions rise between Ripple and the SEC, the future of regulatory oversight in the cryptocurrency industry remains uncertain.