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Ripple’s General Counsel slams SEC’s regulatory approach and calls for “sensible cryptocurrency regulation from Washington”

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Ripple General Counsel Stuart Alderoty has once again criticized the Securities and Exchange Commission (SEC) for its stance on cryptocurrency regulation.

According to Alderoty, recent events in the Ripple vs. SEC lawsuit, along with comments from Rep. Brad Sherman (D-California), suggest that sensible cryptocurrency regulation by Washington is needed.

“Rather than providing regulatory clarity through rule making, the SEC seeks to bully the market by filing or threatening to file for enforcement. Unproven claims masquerading as regulation are bad policies that hurt consumers and markets whipped up by the whims of an unaudited regulator,” Alderoty said in a blog post by RealClearMarkets.

Rep. Sherman’s comment on XRP

During a regulatory hearing of the SEC’s Enforcement Division held by the House Financial Services Subcommittee last week, Rep. Sherman said XRP is a security.

The congressman then asked the commission to do so Go to cryptocurrency exchanges that have made XRP trading easier in the United States.

Rep. Sherman’s comment angered several Ripple executives, including Alderoty and Brad Garlinghouse.

Ripple CEO Garlinghouse noted that Rep. Sherman has a good legal background to know that only the court has the authority to classify XRP as a security.

However, Rep. Sherman chose to do so Driving a political agenda through sound politicsadded Ripple’s CEO.

Need for sensible crypto regulations

“Despite the norm that ongoing enforcement cases are not discussed at these hearings, Subcommittee Representative Brad Sherman made it his mission to put his thumb on the scale of the largest enforcement case in crypto: SEC vs. Ripple,” said Alderoty.

According to Alderoty, the congressman’s off-base remark confirms that US politicians need to make sensible regulations for the country’s cryptocurrency space.

“This is all precisely why Congress needs to fix this mess and provide a comprehensive regulatory framework for crypto,” he said.

In the meantime, Rep. Sherman debunked a FOX annual report on the subject and said his comments were wrong.

He noted that aside from hosting the subcommittee, he has never spoken to an SEC official about Ripple. The congressman noted that he sometimes discusses cryptocurrencies in general with SEC Chairman Gary Gensler.

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