Ripple’s Chief Legal Officer, Stuart Alderoty, has criticized Gurbir Grewal, the Director of Enforcement at the Securities and Exchange Commission (SEC), for comments made about compliance efforts in the crypto industry.
At a recent SEC event, Grewal suggested that the crypto sector was using tactics to avoid regulatory oversight, such as moving to different jurisdictions. He also defended the SEC’s regulatory approach, denying claims of overreach.
Alderoty pointed out inconsistencies in Grewal’s remarks, citing instances where the SEC may have overstepped its authority. He mentioned issues with DebtBox sanctions, a judge’s criticism of the SEC, and a ruling in the Grayscale case.
Alderoty also criticized the SEC’s use of the Howey test, a standard for determining investment contracts. He noted the fluctuating guidance on the test, causing confusion in the industry.
Alderoty called on the SEC to address these concerns, restore credibility, and improve transparency and accountability in crypto regulation.
To mend the harm caused by what he called a “misguided war on crypto,” Alderoty urged the SEC to confront these issues and adopt a more responsible regulatory stance.
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