Stuart Alderoty, the Chief Legal Officer (CLO) of Ripple, has raised concerns about the use of taxpayer money in unsuccessful enforcement actions carried out by the US Securities and Exchange Commission (SEC). Alderoty criticized the SEC’s regulatory approach to the cryptocurrency industry, accusing them of misusing government funds.
In a recent statement on his X account, Alderoty questioned the amount of tax dollars wasted due to the SEC’s attempts to overstep its legal boundaries under Gary Gensler’s leadership. He referred to a recent Fifth Circuit ruling that overturned the SEC’s request for private fund investors to provide detailed disclosures, highlighting the potential impact on artificial intelligence, cryptocurrency assets, and other market sectors.
Alderoty’s comments come at a time of market volatility for XRP, Ripple’s associated cryptocurrency, which is currently valued at approximately $0.5218 according to CoinMarketCap. Despite a 0.94% decrease over the previous day, XRP has seen a 0.15% increase over the past week.
Following President Joe Biden’s apparent support for cryptocurrency, Ripple Labs Inc. CEO Brad Garlinghouse called for the removal of SEC Chairman Gary Gensler. Garlinghouse initiated a “Fire Gensler” discussion on X, sparking both approval and criticism, with some questioning the democratic implications of such a demand.
In a related development, Ripple President Monica Long challenged the SEC’s approach to the cryptocurrency industry at the Money20/20 conference in Amsterdam. This ongoing debate underscores the growing scrutiny of the SEC’s regulatory tactics within the crypto sector.