September 21, 2023

Ripple Attorney Stuart Alderoti: “SEC is a hammer hitting crypto companies”

Article reading time:
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Ripple Attorney Stuart Alderoti: “SEC is a hammer hitting crypto companies”

Ripple’s legal adviser claims that the American regulator deliberately obscures the legal proceedings with the company in order to continue to adhere to the anti-cryptocurrency position.

Stuart Alderoty blamedThe US Securities and Exchange Commission (SEC) in the deliberate suppression of cryptocurrency innovation, using the case against Ripple for this. Recall that earlier the regulator sued the company for the ICO of 2013, calling XRP coins unregistered securities. The lawsuit between the company and the department has been going on for a year and a half.

Ripple denies SEC allegations, citing speechcommission head of corporate finance William Hinman, which he delivered in 2018. In his speech, the official said that bitcoin and ether are sufficiently decentralized, so they may not be classified as securities. Ripple is trying to prove that this statement applies to XRP as well. The regulator insists that Hinman expressed a personal opinion, and not the official position of the SEC.

“The main goal of the SEC is to intimidate, bankrupt anddestroy cryptocurrency companies across the country. The SEC has imagined itself as a hammer that wants to hit crypto companies like nails. The argument that digital currencies, in particular XRP, should be considered securities deliberately confuses regulation. The SEC is stifling the development of crypto-innovations, hiding it under the expansion of its powers regarding the regulation of crypto-currencies, ”the lawyer is outraged.

Alderoti believes that the department deliberately contributesconfusion in business. No member of the crypto industry was able to interpret Hinman's speech as a personal opinion. After the speech of the top manager of the SEC, the conclusion suggests itself that XRP should be considered a commodity or virtual currency operating in an open and decentralized ecosystem, Alderothy argues.

“It has been four years since the “famous” speechHinman, but regulators are no closer to understanding how to classify digital assets in the US, including ether,” the lawyer tweeted.

Many lawyers and analysts believe that the outcomelitigation between the SEC and Ripple could greatly affect how US regulators treat cryptocurrencies and apply securities laws to them. Former SEC chief executive Joseph Hall believes that Ripple has a chance of winning, which will eventually reduce the pressure of regulators on the industry.