Ripple Chief Legal Officer Stuart Alderoty believes Binance’s recent resolution of anti-money laundering violations through a settlement with the US Department of Justice (DOJ) is an important step toward aligning the crypto industry with essential legal and safety standards.
Alderoty noted in a series of tweets that large banks have previously undergone similar regulatory processes during their lifetimes.
He also emphasized that there was no mention of “crypto securities” or the SEC in the lawsuit filed by the DOJ against Binance.
There is no mention of certainties
Significantly, Alderoty pointed out that the Department of Justice (DOJ) has not implicated any securities law violations by Binance, nor has it categorized the assets traded on its platform as securities.
This observation highlights a crucial distinction in the legal treatment of different types of digital assets.
The Ripple executive challenged the SEC’s terminology on “crypto asset securities,” arguing that such a term lacks legal meaning and recognition, especially in light of the DOJ’s approach to the Binance case.
‘Youth behavior’
Alderoty’s statements also drew attention to the involvement of the Treasury Department and the CFTC in the Binance case, specifically noting the absence of the SEC.
He suggested that the SEC’s absence signals the regulator’s divergence from international regulatory trends and domestic counterparts in the US government led by Gary Gensler.
Alderoty likened the SEC’s behavior to that of a “prickly child,” especially in the timing of the announcement of a lawsuit against US-based crypto exchange Kraken.
The watchdog announced the lawsuit on November 20, coinciding with the DOJ’s press conference on the Binance case, a move Alderoty described as a “local embarrassment” due to its apparently “juvenile” nature.
The lawsuit alleges securities violations and commingling of funds. Kraken has vehemently denied the allegations and said it will “vigorously defend itself” in court.
Alderoty’s comments highlight the complex and sometimes controversial landscape of cryptocurrency regulation. As digital assets evolve, his insights provide a critical perspective on the need for coherent and consistent regulatory approaches that balance innovation with regulatory compliance.
