The European Union’s Initiative to Establish Its Own Regulatory Authority similar to SEC

The European Union's Initiative to Establish Its Own Regulatory Authority similar to SEC

Ripple’s Chief Legal Officer Criticizes SEC and the European Union’s SEC Equivalent

Stuart Alderoty, the Chief Legal Officer of Ripple, has conveyed the belief that the US Securities and Exchange Commission (SEC) is becoming irrelevant. This observation falls on the backdrop of a legal feud between Ripple Labs and the SEC following the latter’s decision to sue the former back in 2020. The move has brought significant backlash from across the cryptocurrency community, with industry leaders joining in on saying that the Commission seems to be waning on the international scene.

Ripple Chief Legal Officer Heavily Criticizes Securities Regulator

Alderoty heavily criticized the SEC on Twitter for various reasons, mentioning that the SEC has been losing in court and criticized by judges for shady behavior. He also noted that it’s becoming irrelevant on the international stage. The SEC, on the other hand, appears to be standing firm and has even suggested that it would investigate cases rather than prejudge the matters involved. This stance hasn’t impressed Alderoty, who took the opportunity to hit out at the SEC even further.

Alderoty referred to Gensler’s recent remarks, pointing out that Ripple was sued, but not charged with dishonesty, and that Gensler has already prejudged crypto and filed suit against others without conducting any investigation into the underlying issues. Ripple obtained a partial victory against the SEC when a judge ruled that it did not violate federal securities law by selling XRP on crypto exchanges. Nonetheless, the ruling didn’t settle the dispute entirely, and the Court is yet to decide on the legality of Ripple’s institutional sales of XRP tokens.

Why Europe Wants to Build Its Regional SEC

Meanwhile, Europe has plans to create its own version of the SEC. European Central Bank President Christine Lagarde has proposed the formation of a regional equivalent to the SEC to empower the European Union’s securities watchdog, the European Securities and Markets Authority (ESMA). Lagarde believes that implementing a single rulebook to govern the securities market across the European Union can be achieved by giving additional authority to ESMA, which could notably enhance the supervision of capital markets that continues to be largely at the national level.

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While Ripple’s legal battle with the SEC continues to unfold, the SEC is aiming to solidify its ground. Meanwhile, in Europe, Christine Lagarde has initiated discussions to empower ESMA further, which could lead to the establishment of a regional SEC equivalent. These moves demonstrate a push for stricter regulations and supervisory powers in both the US and Europe.

The European Union's Initiative to Establish Its Own Regulatory Authority similar to SEC
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