all about cryptop referances
Recently, Gary Gensler, chairman of the US Securities and Exchange Commission (SEC), expressed his opinion in a detailed interview with New York Magazine’s Intelligencer regarding why he believes cryptoassets other than bitcoin are securities. However, Stuart Alderoty, Ripple’s chief legal officer, argues that Gensler must “abstain from voting in any enforcement case that raises this issue.” Alderoty insists the SEC chairman “has prejudged the outcome.”
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 pre-assessment of the outcome. Bitcoin.com News recently reported on Gensler voicing his opinions during an interview with New York Magazine’s Intelligencer reporter Ankush Khardori. During the interview, the SEC chairman explained why he views the majority of digital assets, apart from bitcoin (BTC), in the current crypto-economy as securities.
People called us crazy for saying the SEC thought anything but Bitcoin was a security, but now Gensler is saying so publicly. pic.twitter.com/Q9wFjIsNH7
— LBRY 🚀 (@LBRYcom) 28 February 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 to determine whether or not XRP tokens are securities. Alderoty’s tweet read: “Crypto Attorney PSA: Chairman Gensler has once again declared that all cryptocurrencies except BTC are unregistered securities. He must now recuse himself from voting in any enforcement case raising this issue, as he has already prejudged the outcome. Antoniu v. SEC (8th Cir. 1989).”
Antoniu v. SEC was about a man named Antoniu who appealed a decision made by the SEC that prevented him from working as a stockbroker. Antoniu argued that the participation of SEC Commissioner Troy Paredes in the secession process tainted the case with the appearance of impropriety. The court ruled in favor of Antoniu, stating that 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 employees in specific situations to prevent the appearance of impropriety.
Jeremy Hogan, an attorney and partner at Hogan & Hogan, responded to Alderoty’s tweet with sarcasm states that Chairman Gensler “obviously spoke not as head of the SEC, but in his capacity as a long-distance runner and lover of orange juice. So it’s fine.” Other Twitter users in Alderoty’s thread asked the lawyer if he would take legal action, with one person traces“Do you also want to approach this from a legal point of view, [Stuart Alderoty]? Like filing petitions or whatever it takes to force Gensler to recuse himself?”
However, not everyone shared the same view as the Ripple lawyer, with one person calling the opinion “absurd.” – Chairman Gensler has not prejudged the facts in any particular case. And even if such an argument could be sustained (which is ludicrous), it would only require dismissal of an appeal by an enforcing AP, not his involvement in voting to approve an enforcement action,” answered to Alderoty’s tweet. In the Antoniu v. SEC case, the court voided all proceedings in which the Commissioner had participated and instructed the US Securities and Exchange Commission to conduct a de novo review of the evidence without the involvement of Troy Paredes.
What do you think of the debate over SEC Chairman Gensler’s statements on cryptocurrency and securities, and Ripple’s call to withdraw? Do you think Gensler’s comments show a bias against cryptoassets, 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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