SEC’s enforcement approach getting cornered left, right and center.
SEC is the regulatory body which has been recognized as regulator for the crypto currency market. In the recent times, SEC has been receiving a lot of criticism from various people spread across the market and even from the government institutions.
The chairperson of SEC Gary Gensler has been facing the heat from all the corners of the market for making the regulatory body, an enforcement body. Many people also believe that, SEC has become a power craving body thats politicizing enforcement on the cryptocurrency market. The approach taken by SEC is certainly getting cornered left, right and center in the market.
Ripple and SEC have had a conflict going on for the longest period of time. Ripple has been one of those companies that has not backed down against the challenges thrown by SEC, it has rather faced the challenges and challenged back SEC.
According to the reports, the chief lawyer of Ripple has gone ahead to make a comment that, “SEC is just trying to be a bully in the crypto market by filing unproven Allegations.”
Stuart Alderoty’s comments on SEC’s enforcement approach.
Stuart Alderoty, general counsel at Ripple, claimed that the Securities and Exchange Commission is intimidating the cryptocurrency markets by making unsubstantiated claims in the name of regulation. He also asserted that Washington, DC, urgently needs to enact sensible crypto legislation.
Let’s take a look at the official tweet made by the chief lawyer of Ripple.
Rather than providing regulatory clarity through rulemaking, the SEC is bullying crypto markets by filing unproven allegations masquerading as regulation. In my latest op-ed, I outline the urgent need for sensible crypto legislation from Washington. https://t.co/BiY5rkCdEM
— Stuart Alderoty (@s_alderoty) July 27, 2022
It is quite evident that, the actions of SEC have not gone down particularly well by Ripple’s chief lawyer. He added that, the regulatory body is just acting as an enforcement body and is not actually regulating the market. He also added that, the crypto market is getting exhausted by the number of enforcement cases that the SEC is putting in.
He uses the SEC’s ongoing litigation against Ripple as an instance. In relation to this situation, he said that a Judge last year stated that “XRP is no more a security after the SEC launched the enforcement action than it was before it.”
The market is already dealing with many demons like the market crash and the persistent instances of frauds and scams. The last thing left for the market to deal with is its own regulatory body acting as an enforcement body and enforcing the crypto companies into lawsuits. SEC has to surely draw a line and start regulating the market in a more appropriate manner, as the trust of investors and companies has already started fading away.