”Does SEC chairman even know the law?” wonders general counsel of Ripple

Does SEC chairman even know the law - wonders general counsel of Ripple

Gary Gensler under fire. Ripple’s General Counsel Stuart Alderoty indicates that the SEC chairman may have a problem with his knowledge of the law.

Controversy over Gary Gensler’s statements

There has long been a legal dispute over which cryptocurrencies in the United States should qualify as securities and which should not. Discussions and hypotheses in this aspect have indeed emerged. One side of the conflict is the Securities and Exchange Commission (SEC), headed by its chairman Gary Gensler.

Meanwhile, the SEC head is facing very strong resistance from the cryptocurrency community. One person who has been particularly negative about Gensler is Ripple’s general counsel, Stuart Alderoty. In a recent statement, he referred to Gensler’s misinterpretation of the U.S. Supreme Court test. Alderoty shared his criticism via Twitter:

“At today’s Senate Banking Committee hearings, Chairman Gensler misrepresented the Supreme Court test to determine what is and is not a security. Was this intentional, or does he really not know the law? Which is worse?”

The cryptocurrency community reacts

The question, although it seemed rhetorical, resulted in a wide-ranging discussion. It involved, among others, attorney James K. Filan, who said rather briefly that “there are no accidents.”

LBRY, which is currently in a legal battle with the Securities and Exchange Commission, also offered its opinion. Its representatives, in response to Aleroty’s post, wrote:

“Your tact is admirable, but we all know how it is.”

The issue was also addressed by Congressman Bill Huizenga, who exhorted:

“The President should not simply choose when and where to testify. I urge my colleagues in the House to immediately schedule a hearing with Gary Gensler and the full SEC so that we can discuss issues that affect the hardworking Americans who participate in our markets.”

Is bitcoin alone not a security?

Aleroty’s opinion came just after the SEC chief defended his agency before the US Senate Banking Committee. During the hearing, Gensler pointed out that, except for Bitcoin, all cryptocurrencies fall under the definition of a security, which forces them to register accordingly. 

Gesler’s opinion is disagreed with by Republican Pat Toomey, who explains:

“Cryptocurrency tokens have varying degrees of decentralization and usually have no financial claim on the issuer. These are very serious and important differences from traditional securities and deserve a clearly defined and adapted regulatory framework.”

Disclaimer: Blockbulletin does not take accountability of investments based on the information of the website. We highly advice readers to make extensive research prior to any invest

Share this article

More news

All articles loaded
No more articles to load


Cryptocurrency wallets

Cryptocurrency wallets

We talked about security when trading crypto assets in an article titled “Online security“. We also mentioned how important it…
hardware wallets

Cryptocurrency hardware wallets

From the article titled “Cryptocurrency wallets” you learned about the different types of wallets. They were briefly characterized there. Let’s…
Where to buy cryptocurrency brokers

Which cryptocurrency Brokers to use

In the article “Where to Buy Cryptocurrencies (Exchanges)“, we introduced you to which exchange platforms you can purchase cryptocurrencies on.…
Trading cryptocurrencies

Trading cryptocurrency

In the cryptocurrency market, you face many opportunities to invest in cryptocurrency or buy or sell cryptocurrency. If you want…
All articles loaded
No more articles to load


All articles loaded
No more articles to load

Latest news

All articles loaded
No more articles to load