Ripple Legal Chief Urges SEC Reforms as Gensler Steps Down

Ripple’s Chief Legal Officer, Stuart Alderoty, has some suggestions for the next leader of the SEC to rebuild trust in the crypto industry. With Gary Gensler stepping down soon, Alderoty proposes ending non-fraud crypto litigation, like the SEC’s case against Ripple. A recent court ruling found that while Ripple violated securities laws with institutional sales of XRP, public exchange sales were not an issue. Ripple was fined $125 million, much less than what the SEC initially wanted, and the case is now being appealed.

Alderoty also recommends keeping pro-crypto Commissioners Hester Peirce and Mark Uyeda for balanced oversight. Peirce, often known as “Crypto Mom,” has been a strong advocate against the SEC’s crypto enforcement. However, it’s unlikely she will become the next SEC chair as her post-agency plans might involve beekeeping rather than politics. Uyeda, who has criticized the SEC’s regulatory approach, is open to leading the agency and has called for a shift away from enforcement-focused governance.

In addition, Alderoty suggests that the SEC should work with Congress and other regulators to create clear and straightforward crypto rules without assuming sole jurisdiction over the sector. By collaborating with others, the SEC can establish a more cohesive regulatory framework for the crypto industry.