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Why SEC Is Becoming Irrelevant: Europe Eyes Independent Crypto Oversight 3w ago by

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Ripple’s Chief Legal Officer, Stuart Alderoty, believes that the US Securities and Exchange Commission (SEC) is becoming irrelevant. Meanwhile, Europe has plans for its own version of the SEC.

The SEC has been on the receiving end of community backlash, particularly after it sued Ripple Labs in 2020. Industry leaders believe that it is becoming irrelevant on the international stage.

Ripple Chief Legal Officer Heavily Criticizes Securities Regulator

Amid the ongoing legal battle between Ripple Labs and the SEC, Alderoty heavily mocked the SEC. He wrote on X (Twitter):

“The SEC is losing in court; being criticized by Judges for shady behavior; being rebuked by the Gov’t’s internal auditor; hiding info about meetings with a felon; becoming irrelevant on the international stage.”

Recently, the SEC chair Gary Gensler uploaded a video on X, quoting the American businessman and politician Joseph P. Kennedy:

As Joseph P. Kennedy, the first @SECGov Chair, once said: “We are not prosecutors of honest business, nor defenders of crookedness. We are partners of honest business & prosecutors of dishonesty. We shall not prejudge, but we shall investigate.”

Check out my recent remarks:

— Gary Gensler (@GaryGensler) November 16, 2023

However, Alderoty took the opportunity to criticize the SEC further. He said:

“Fact check Gensler’s recent remarks. Ripple was sued, but never charged with ‘dishonesty.’ The failed case against it was prejudged, beginning with the ethically compromised Bill Hinman. Gensler has prejudged crypto and has filed suit against others w/o investigation.”

In July, Ripple obtained a partial victory against the SEC as the judge ruled that Ripple did not violate federal securities law by selling XRP on crypto exchanges. However, the legal battle is far from over, as the Court has yet to decide on the legality of Ripple’s institutional sales of XRP tokens.

Read more: Everything You Need To Know About Ripple vs. SEC

Why Europe Wants to Build Its Regional SEC

According to Bloomberg, European Central Bank President Christine Lagarde has proposed Europe’s regional equivalent of the SEC. She wants to give more powers to the European Union’s securities watchdog, the European Securities and Markets Authority (ESMA).

Lagarde believes that by doing so, a single rulebook can govern the securities market across the European Union. She said:

“Supervision of capital markets remains largely at the national level. A European agency with a broad mandate, including direct supervision, could help address that problem.”

Read more: Crypto Regulation: What Are the Benefits and Drawbacks?

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