Ripple Executive Slams SECs Wasteful Enforcement Actions
- Stuart Alderoty, Ripples chief legal officer, criticized the SEC for filing enforcement actions after the DOJ had taken legal steps.
- He believes these follow-on cases add little value, waste resources, and fail to protect investors effectively.
- The SEC has frequently mirrored the DOJs actions, including in the FTX case involving Sam Bankman-Fried.
Stuart Alderoty, chief legal officer at Ripple, has criticized the U.S. Securities and Exchange Commission (SEC) for duplicating enforcement efforts. He pointed out that the SEC frequently files civil cases after the Department of Justice (DOJ) has already taken action. He argued that these follow-on cases add little value, waste resources, and fail to protect investors.
SECs Repeated Actions Add Little Value
Alderoty highlighted that the SEC often follows the DOJ by filing civil securities fraud charges, which he considers redundant. He cited the FTX case as a key example where the SEC acted after the DOJ had already filed charges against Sam Bankman-Fried. He stated that these actions focus more on generating headlines than achieving meaningful regulatory outcomes.
The SECs enforcement strategy has drawn criticism from multiple legal experts within the cryptocurrency sector. Alderoty believes the agency should allocate resources to its primary mission instead of duplicating the DOJs efforts. He also noted that these civil cases often result in difficult-to-collect penalties.
The Ripple executive pointed to other cases where the SEC mirrored DOJ actions, such as the Coinbase insider trading lawsuit. He argued that if the DOJ declines to pursue securities fraud charges, the SEC should not step in simply to make a statement. Coinbases legal officer Paul Grewal also criticized the SEC for pursuing cases that lack substantial legal grounding.
SECs Crypto Enforcement Faces Growing Doubts
Alderoty has long called for the SEC to shift its focus away from non-fraud cryptocurrency cases. He stated that the agency should not pursue cases that do not involve clear fraud, as they only create regulatory uncertainty. His stance aligns with growing concerns in the crypto industry about regulatory overreach.
Former SEC official John Reed Stark recently suggested that the agencys cryptocurrency enforcement is losing momentum. He claimed that the SECs efforts in the crypto sector have weakened, with fewer major cases being pursued. Alderoty predicted that the SEC may soon drop its appeal against Ripple, signaling a retreat from its aggressive stance.
As legal challenges mount, the SECs approach to crypto regulation remains under scrutiny. Experts have questioned whether the agencys enforcement actions serve a genuine regulatory purpose or create unnecessary legal battles. The debate over the SECs role in the crypto industry continues, with calls for a more focused and effective approach.
Ripple and Coinbase Call for Regulatory Clarity
Alderotys remarks reflect broader frustrations within the cryptocurrency industry regarding the SECs regulatory strategy. He believes the agency should focus on protecting investors rather than engaging in high-profile legal disputes. He argues that the SECs enforcement actions have failed to provide clear guidelines for crypto companies.
Coinbases legal team has also pushed for a more transparent regulatory framework. Grewal criticized the SECs filing pattern of lawsuits, which lacked strong legal foundations. He emphasized that the DOJs decisions should be respected rather than contradicted by additional civil charges.
Read more: https://www.tronweekly.com/ripple-executive-slams-secs-wasteful/
Text source: TronWeekly
