Ripple Chief Legal Officer Stuart Alderoty has once again commented on the SEC by delivering a sharp critique of the U.S. Securities and Exchange Commission (SEC) and its approach to digital assets.
In a recent statement on social media platform X, Alderoty emphasized that the agency’s job is simple: to decide if an asset is a security or not. They do not decide if it is legal or not, just what category it fits into.
Alderoty praised the simplicity of the SEC’s statement on memecoins, highlighting that they do not confer rights to income, profits or assets. He pointed out that their value is determined by market sentiment, not managerial efforts, and hence, they do not qualify as investment contracts.
Alderoty Explains SEC’s Overreach
The CLO also reminded the agency that its mandate is to enforce existing laws and guidelines, rather than creating complex new rules. He urged the agency to focus on clear guidance and avoid vague concepts like “decentralization”
These current remarks by Alderoty reflect Ripple’s broader stance against what is being perceived as regulatory overreach by the agency. He has consistently argued that the agency should focus on fraud-related causes and avoid expanding its jurisdiction of securities laws.
This remark has come amid the heightened scrutiny of memecoins and their popularity in the crypto markets. Alderoty’s position is in line with Ripple’s long-standing call for clear and transparent guidelines for digital assets.
Market Reaction on Memecoin Statement
The agency’s approach has drawn criticism from the entire crypto industry, with many echoing Alderoty’s concerns about regulatory uncertainty hindering innovation.
Even though many consider the agency’s cautious stance on memecoins as a step towards clarity, others worry it could leave room for bad actors to exploit unregulated spaces.
As Ripple continues its legal battle with the agency over XRP’s classification, Alderoty remains a vocal advocate for fair and balanced regulations.
This latest remark by Alderoty clearly indicates his belief that legal clarity is the key to the future of the crypto industry.
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