Ripple Tip: SEC shakedowns let consumers hold the bag

Reply comes as Ripple Labs and other critics believe SEC overstepped its mark on crypto space enforcement .

Ripple Labs General Counsel Stu Alderoty responded to a recent op-ed piece by US Security and Exchange Commission Chairman Gary Gensler, saying that the crypto market upheavals by the regulator do not protect consumers.

In an op-ed published Monday by The Wall Street Journal (WSJ) titled “SEC wants to be America’s crypto cop,” Alderoty claimed the SEC is “pushing its follow-on regulators” instead of focusing on regulatory clarity for crypto.

He gave an example of BlockFi's recent "shakedown" by the SEC, which led to the company being "on the auction block" and two other similar companies "going to the belly", in arguing:

"Consumers weren't protected, they ended up with the bag."

The piece came in response to Gensler's Aug. 19 article "SEC Treats Crypto Like Rest of Capital Markets," which also appeared on WSJ and defended the regulator's crackdown on the cryptocurrency industry.

Ripple's attorney, however, argues that the SEC has failed to provide enough clarity on crypto regulation and instead declares itself as "the cop on the beat" for crypto.

It claims the President is "dismissing fellow regulators" and President Biden's "forward-thinking" Executive Order, which calls on regulators to collaborate on crypto regulation.

The executive order that Alderoty is referring to is the “Ensuring Responsible Development of Digital Assets,” which was signed on March 9, 2022 to ensure that the SEC and the Commodity Future Trading Commission (CFTC) coordinate and collaborate on the establishment of crypto regulations. frame.

However, Aldetory claims that the SEC has neither complied with the executive order nor provided "regulatory clarity for crypto" and is "instead protecting its turf at the expense of more than 40 million Americans in t...