Endorsement of SEC Commissioner Hester Peirce’s Criticisms
Stuart Alderoty, Chief Legal Officer of Ripple Labs, and members of the XRP community have expressed their support for SEC Commissioner Hester Peirce’s critique of the regulatory body’s “misguided enforcement-driven approach to crypto.” Alderoty thanked Peirce for her disagreement with the SEC’s actions against LBRY, a blockchain-based file-sharing and payment network. He suggested submitting an amicus brief to address the issue.
Commissioner Peirce, known as ‘Crypto Mom’ for her progressive views on cryptocurrency regulation, criticized the SEC’s actions against LBRY on October 27. LBRY was found to have violated Section 5 of the Securities Act of 1933 and was prohibited from further unregistered securities offerings involving its native token.
The SEC commissioner expressed her frustration over the commission’s approach, especially in light of many ongoing crypto fraud cases that are yet to be resolved. “The Commission’s requested remedies were entirely out of proportion to any harm,” she stated.
The XRP Community’s Support
Pro-XRP lawyer John Deaton also supported Alderoty’s suggestion of submitting an amicus brief. Deaton emphasized the importance of representing the voice of 75,000 individual token holders in court to provide a more informed and insider perspective.
“The SEC’s conduct isn’t just disconcerting; it’s disheartening for innovators in a field that promises to revolutionize everything from finance to governance,” Deaton explained.
The Fall of LBRY: A Cautionary Tale
LBRY, a blockchain platform with practical applications, ultimately shut down due to financial burdens and regulatory pressure. Its demise serves as a warning for other crypto platforms navigating the complexities of U.S. securities laws.
This endorsement from Ripple’s Chief Legal Officer and the XRP community holds significance in light of Ripple’s ongoing legal battle with the SEC. As Alderoty and Deaton suggest, it may be time for the crypto community to seek legal recourse through the courts.
Hot Take: The Call for Change in Crypto Regulation
The endorsements from Stuart Alderoty, John Deaton, and members of the XRP community highlight a growing frustration with the SEC’s approach to crypto regulation. Commissioner Hester Peirce’s dissent and criticism of the SEC’s actions against LBRY have struck a chord within the industry. The call for an amicus brief and a more informed perspective in court reflects a desire for fairer treatment and greater clarity in regulatory enforcement. The downfall of LBRY serves as a cautionary tale, emphasizing the need for comprehensive and balanced crypto regulations that foster innovation while protecting investors and consumers.
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