Ripple’s legal chief, Stuart Alderoty, urged the incoming SEC leadership to end non-fraud crypto cases and collaborate with Congress on clear regulations.
Ripple Legal Chief’s take on Crypto Reform
On Thursday, Stuart Alderoty, Ripple’s chief legal officer, revealed his recommendations for the incoming U.S. Securities and Exchange Commission (SEC) leadership on the social media platform X. In an effort to resolve crypto regulation effectively, Alderoty expressed his confidence in the transition team and recommended a number of actions. He composed the following:
I trust the transition team to make the right call with these table stakes for crypto in mind.
The Ripple legal chief advised the immediate cessation of non-fraud-related crypto litigation and the advancement of collaboration by guaranteeing that SEC Commissioners Mark Uyeda and Hester Peirce continue in their positions.
He underscored the necessity of clear, uncomplicated crypto regulations that are created in collaboration with Congress and financial regulators, without assuming that the SEC is the default jurisdiction.
Furthermore, he advocated for the renunciation of the 2018 Hinman speech and the 2019 framework for digital asset analysis, as well as improved transparency in the Freedom of Information Act (FOIA) process and measures to reestablish public trust and accountability by addressing past SEC issues through the Office of Inspector General.
In conjunction with President-elect Donald Trump’s inauguration on Thursday, SEC Chair Gary Gensler also submitted his resignation, which will take effect on January 20, 2025. During Gensler’s tenure, the cryptocurrency sector was subject to substantial enforcement actions, which included litigation against prominent exchanges such as Binance and Coinbase.
The crypto community has responded with optimism to his departure, as they anticipate a regulatory environment that is more conducive to innovation. In December 2020, the Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs, CEO Brad Garlinghouse, and co-founder Chris Larsen, alleging the unauthorized transfer of XRP tokens as unregistered securities.
Alderoty shared on X Saturday that “Victory has a thousand fathers, but make no mistake” in reference to Gensler’s departure and its potential impact on the resolution of the Ripple lawsuit.
The path was paved by the resilience and expertise of Ripple Team Legal, as well as the courage of Brad and Chris (the majority of whom are unidentified and have never sought the Twitter spotlight). Additionally, he stated:
Ripple provided the blueprint to defeat Gary Gensler’s inexplicable war on crypto. We kept the door open long enough for the industry to survive and seize this incredible moment. The faith and support of the XRP Army provided much-needed hope in the darkest days.
