Ripple CLO Highlights Conflicting Statements on Crypto Regulation
Ripple’s Chief Legal Officer, Stuart Alderoty, recently pointed out the contradictory positions of the SEC and Treasury Secretary Janet Yellen on crypto regulation. The SEC referred to crypto as a “rounding error” in the Coinbase case, while also stating that no legislative gaps exist and it can be easily brought under its authority. On the other hand, Secretary Yellen emphasized the need for legislation to address regulatory gaps. Alderoty highlighted that both statements cannot be true and called for clarity and uniformity in regulators’ actions and statements regarding crypto.
Contradictory Statements Could Benefit Ripple and Coinbase
The conflicting statements from regulators could potentially be advantageous for Ripple and Coinbase in their legal battle against the SEC. They can use these statements to argue that without legal clarity on crypto, the lawsuits are unfair. The companies may argue that regulators should first focus on providing a clear and consistent statement before taking legal action.
Coinbase Faces Criticism over SGB Controversy
Coinbase has faced criticism from lawyers regarding the Songbird (SGB) crypto controversy. Fred Rispoli from HODL Law firm accused Coinbase of converting customer property into its possession and control, specifically referring to customers’ $SGB. He expressed his belief that Coinbase takes advantage of its customers whenever possible. Another lawyer, Bill Morgan, condemned Coinbase for not participating in the SGB snapshot but still holding or selling SGB tokens not intended for them. However, Morgan also mentioned that legal action based on equitable principles of unjust enrichment could be considered in Australia.
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