Regulation

Ripple CLO Calls On Kamala Harris To End SEC’s War On Crypto

Published

3 months ago

August 10, 2024

Stuart Alderoty, Ripple’s Chief Legal Officer (CLO), has issued a strong call for action from Vice President Kamala Harris. He urged the VP to end what he describes as the U.S. Securities and Exchange Commission’s (SEC) “misguided war on crypto.” This statement comes in the wake of a significant court ruling in the ongoing legal battle between Ripple and the SEC.

Ripple CLO’s Request To Kamala Harris

Alderoty’s comments were made in the backdrop of a recent interview where he expressed optimism about the court’s decision. However, he took recently took to X and emphasized the need for immediate political intervention. He referred to Vice President Kamala Harris’ proposed “crypto reset.”

Alderoty stated, “If this Admin is serious about a ‘reset,’ it must act NOW to end the SEC’s misguided war on crypto.” Moreover, his remarks underscore the urgency that the crypto community feels in addressing the SEC’s regulatory approach, which many industry leaders view as hostile.

Alderoty On Recent Ripple SEC Lawsuit Ruling

This week, on Wednesday, the court ordered Ripple to pay a $125 million fine for failing to register sales of its XRP token to institutional investors. This amount is significantly less than the $2 billion originally sought by the SEC. Hence, Alderoty hailed the Ripple SEC lawsuit ruling as a victory not only for them but for the entire crypto industry.

He stated, “Ripple didn’t act recklessly… There were no victims; the counterparties to those transactions suffered no financial loss at all.” Furthermore, Alderoty further explained that the court’s decision provided much-needed clarity. It established that XRP itself is not a security, which has been a central issue in the case.

“The core clarity that we sought in this case [is] that XRP is not in and of itself a security… just like a bar of gold is never a security,” he noted. This ruling, according to Alderoty, sets a crucial legal precedent that could influence the crypto regulations. Despite the positive outcome, Alderoty acknowledged the possibility of an appeal from the SEC.

However, he expressed confidence that the Ripple SEC lawsuit is nearing its end. “In our minds, we are finally done… If the SEC is a rational actor… there should be no appeal,” he said. He also emphasized that the blockchain payments firm is focused on moving forward and growing its business.

Also Read: Just-In: Ripple Stablecoin RLUSD Private Beta Live On XRP Ledger & Ethereum Mainnet

Harris Campaign & Crypto Industry

The legal developments in the crypto space has placed Vice President Kamala Harris’ campaign in a challenging position. Recently, Harris’s campaign representatives participated in a crypto roundtable organized by Democratic Congressman Ro Khanna. It also included high-level officials such as Deputy Treasury Secretary Wally Adeyemo and Deputy White House Chief of Staff Bruce Reed.

Although Kamala Harris’ senior adviser, Kristine Lucius, was present, she did not speak during the meeting, according to people present in the meet. The roundtable was part of Harris’s broader effort to engage with the crypto community. Sincerely several years, the community has been calling for clearer regulations and a reset of the government’s approach to the industry.

Also, the Crypto4Harris town hall event is currently underway. This further highlighting the campaign’s efforts to connect with crypto advocates. However, industry leaders like Ripple CEO Brad Garlinghouse and CLO Stuart Alderoty are urging Harris to take immediate and decisive action.

They, along with other prominent figures in the crypto world, also called for the removal of SEC Chair Gary Gensler, who they view as a major obstacle to the industry’s growth. These leaders include Gemini co-founder Tyler Winklevoss and former Coinbase executive Balaji Srinivasan. Meanwhile, Cardano founder Charles Hoskinson continued criticizing Kamala Harris.

Positive Outlook

Despite the ongoing friction between the crypto industry and the SEC, some remain hopeful about the future. Anthony Scaramucci, a well-known figure in the financial industry, expressed optimism that Kamala Harris could soon gain support within the crypto community.

“It’s encouraging that these high-level officials took the time to show up and listen to our industry. My colleagues in the crypto space understandably want action now, but that’s not how things work in Washington,” Scaramucci said, according to a FOX Business report.

In addition, Paul Grewal, Coinbase’s Chief Legal Officer, also voiced a positive outlook. He emphasized the importance of focusing on the Harris campaign’s potential to reshape the government’s approach to crypto. “She’s the perfect candidate to be a strong new face for crypto and make a break with the past,” Grewal stated.

Also Read: XRP Scam: Ripple Issues Warning On Rising XRP Scam After SEC Lawsuit Ruling