Brenda Kanana
Stuart Alderoty, Ripple’s Chief Legal Officer, has outlined critical recommendations for the future leadership of the U.S. Securities and Exchange Commission (SEC). As the debates continue about a possible change of leadership, Alderoty has stressed that urgent actions are required for digital currencies to coexist with existing laws.
A lot of unsolicited advice on here about who should (or shouldn’t) be the next SEC Chair. I trust the transition team to make the right call with these table stakes for crypto in mind:
1.End all non-fraud crypto litigation on Day 1.
2.Get commitments from Commissioners Uyeda and…— Stuart Alderoty (@s_alderoty) November 21, 2024
Alderoty calls for ceasing non-fraud-related cryptocurrency lawsuits on the first day of the new SEC chair. He said this change would mean that the agency’s current enforcement-based model would be replaced by a more flexible regulatory model that supports growth. His proposed framework ensures that there is a proper, well-defined set of rules that govern the world of crypto and at the same time encourage innovation.
Alderoty has also mentioned that Commissioners Hester Peirce and Mark Uyeda should be kept in the Commission. According to him, their involvement would help in reaching a more rationale on the issue of crypto regulation.
Furthermore, Alderoty also emphasizes the need for more people to get involved. He recommends that the SEC, Congress, and other financial regulators come up with a clear framework of guidelines. This would help to avoid the situation in which the SEC would dominate the regulation of the cryptocurrency market. Alderoty instead proposes a pragmatic approach to regulation where the rules are clear, and governance is shared.
Gensler’s resignation from the SEC
This news comes as SEC Chair Gary Gensler announced his resignation from his position. He stated on X, “On January 20, 2025, I will be stepping down as @SECGov Chair.”
Following the news of Gensler’s resignation, Teresa Goody Guillén, a blockchain enthusiast, may be slated to take over from Gensler. Guillén, a partner at BakerHostetler, had previously worked at the SEC.
Gensler’s resignation follows statements made by President-elect Donald Trump that he will remove Gensler from his position if he is elected. Trump is set to assume the presidency on Jan. 20.
Gensler’s tenure at the SEC saw him champion programs to modernize market regulation, such as attempts to introduce central clearing in Treasury markets and enforce rules that link executive remuneration with performance. However, his most adversarial steps were in the sphere of the cryptocurrency market.
During his tenure at the SEC, Gensler charged crypto exchanges including Coinbase, Binance, and Kraken for the violation of federal securities laws. This approach did not go down well with the crypto industry and some people stated that the agency’s framework is not suitable for digital tokens.
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