Ripple Legal Chief Accuses SEC Chair of Lying About XRP Compliance
In a recent hearing before the U.S. House of Representatives Committee on Financial Services, Ripple legal chief Stuart Alderoty accused SEC Chair Gary Gensler of spreading falsehoods regarding the legal compliance of XRP under securities laws. Gensler has been known for applying U.S. securities laws to cryptocurrencies, despite arguments from market participants that these rules are not suitable for this new asset class.
XRP and the Securities Market
Alderoty referenced a recent Summary Judgment by Judge Analisa Torres, which stated that cryptocurrencies fall within the realm of the crypto asset securities market. However, in July 2023, Judge Torres ruled that the sale of XRP tokens to retail buyers does not qualify as a securities transaction. Alderoty quoted the judgment, stating that “XRP, as a digital token, is not in and of itself a contract, transaction or scheme that embodies the Howey requirements of an investment contract.”
No Comments on Active Lawsuits
During his pre-hearing testimony, Gensler made it clear that he would not be able to comment on any ongoing lawsuits. This means that he did not address questions about the XRP lawsuit or the status of the spot Bitcoin ETF conversion application in relation to the Grayscale lawsuit.
Hot Take: Ripple Legal Chief Accuses SEC Chair of Misrepresenting XRP Compliance
In a recent hearing, Ripple legal chief Stuart Alderoty accused SEC Chair Gary Gensler of lying about the legal compliance of XRP under securities laws. Alderoty referenced a judgment that classified cryptocurrencies as part of the crypto asset securities market but clarified that XRP does not qualify as a securities asset. He criticized Gensler for perpetuating the idea of a “crypto asset securities market” and misleading the public. Gensler declined to comment on ongoing lawsuits, including the XRP lawsuit and the spot Bitcoin ETF conversion application in relation to the Grayscale lawsuit.
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