Ripple’s lead lawyer is criticizing what he says are childish antics by the US Securities and Exchange Commission (SEC) as regulators continue to target crypto assets.
In a new thread on the social media platform X, attorney Stuart Alderoty says say Binance’s recent regulatory woes are a “necessary step” to bring the digital asset industry into compliance.
“Binance’s resolution on anti-money laundering violations (etc.) is a necessary step to bring the crypto industry into compliance with these important laws and safeguards. Big banks went through all this years ago.”
However, according to Alderoty, the SEC’s recent enforcement actions and its response to Binance’s allegations show the agency to be particularly unreasonable compared to the other regulators.
“The Treasury Department and CFTC (Commodity Futures Trading Commission) have joined the DOJ (Department of Justice) in the Binance deal. The SEC did not and was noticeably absent from the stage today. This sends a clear message that the agency – under Gensler – has become not only an outlier globally, but also an outlier within its own government.
The SEC, like a petulant child who can’t stand being ignored, tweeted its misguided lawsuit against Kraken today at 3:00 PM EST – the exact time the DOJ press conference on Binance was supposed to begin. Real shame for this youthful behavior.”
Alderoty also says that the SEC has gone so far as to coin new terms for crypto assets that have no technical meaning under the law and have not been recognized by the other regulators.
“Please note that the SEC’s coined term ‘crypto asset securities’ is nowhere to be found in the DOJ case against Binance because it has no meaning under the law. The courts have been very clear that tokens themselves are not securities.”
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