Recently, Gary Gensler, Chairman of the United States Securities and Exchange Commission (SEC), expressed his opinion in an in-depth interview with New York Magazine’s Intelligencer on why he thinks crypto assets other than bitcoin are titles. However, Stuart Alderoty, Ripple’s chief legal officer, argues that Gensler should “recuse himself from voting on any law enforcement matter that raises this issue.” Alderoty insists the SEC Chairman “prejudged the outcome.”
Lawyer Starts Twitter Discussion About SEC Chairman’s Comments On Cryptocurrency And Securities
The recent interview with SEC Chairman Gary Gensler could have negative implications for the US securities regulator, as he has been accused of publicly discussing his bias on the outcome. Bitcoin.com News recently reported that Gensler aired his views during an interview with New York Magazine Intelligencer reporter Ankush Khardori. During the interview, the SEC Chairman explained why he considers the majority of digital assets, other than bitcoin (BTC), in today’s crypto-economy as securities.
People called us crazy for saying the SEC thought anything other than Bitcoin was security, but now Gensler is saying it publicly. pic.twitter.com/Q9wFjIsNH7
— LBRY 🚀 (@LBRYcom) February 28, 2023
On February 27, 2023, Ripple’s Chief Legal Officer, Stuart Alderoty, tweeted about Gensler’s public statements after the interview. Ripple is currently in a legal dispute with the SEC over whether XRP the tokens are securities or not. Alderoty’s tweet read: “PSA Crypto Advocate: Chairman Gensler has once again stated that all cryptocurrencies except BTC are unregistered titles. He must now recuse himself from voting on any enforcement case that raises this issue, as he has already prejudged the outcome. Antonius c. SEC (8th Cir. 1989).
Antonius c. DRY dealt with the issue of a man named Antoniu who appealed an SEC ruling barring him from working as a stockbroker. Antoniu argued that SEC Commissioner Troy Paredes’ participation in the disbarment proceedings tainted the case with the appearance of impropriety. The court ruled in Antoniu’s favor, saying the commissioner’s statements indicated that they had already determined the facts of the case before hearing it. The case established the importance of recusal by SEC staffers in specific situations to prevent the appearance of impropriety.
Jeremy Hogan, attorney and partner at Hogan & Hogan, responded to Alderoty’s tweet sarcastically indicating that Chairman Gensler was “obviously speaking not as the head of the SEC but as a long-distance runner and orange juice lover. So, it’s OK. Other Twitter users in Alderoty’s thread asked the attorney if he would take legal action, with one person ask, “Are you also going to approach this from a legal point of view, (Stuart Alderoty)? Like filing motions or whatever it takes to force Gensler to recuse himself? »
However, not everyone shared the same view as Ripple’s jurist, and one person called the opinion “absurd”. “President Gensler did not prejudge the merits of any particular case. And even if such an argument could be made (which is ridiculous), it would only require the recusal of an enforcement PA’s appeal, not their involvement in the vote on allowing a enforcement action,” the individual said. replied to Alderoty’s tweet. Regarding the Antoniu v. SEC, the court quashed all proceedings in which the commissioner had participated and instructed the US securities regulator to conduct a de novo review of the evidence without any involvement from Troy Paredes.
What do you think of the debate over SEC Chairman Gensler’s statements on cryptocurrency and securities, and Ripple’s call for his recusal? Do you think Gensler’s comments demonstrate a bias against crypto assets, or do you think he is simply expressing his opinion on the matter? Let us know your thoughts in the comments section below.
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