Stuart Alderoty, Chief Legal Officer of Ripple Labs, and critical members of the XRP community have endorsed SEC Commissioner Hester Peirce’s criticisms of what she considers to be “misguided enforcement-driven approach to crypto” by the regulatory body.
Alderoty took the opportunity to thank Peirce for her disagreeing the views on the SEC’s actions against LBRY, a blockchain-based file-sharing and payment network. Suggesting a deviation from standard protocols, Alderoty proposed an amicus brief—a legal document submitted by non-litigants with a strong interest in the case—to tackle the issue.
Peirce, often dubbed ‘Crypto Mom’ for her progressive stance on cryptocurrency regulation, issued a detailed dissent on October 27, criticizing the SEC for its actions against LBRY. The platform was found in violation of Section 5 of the Securities Act of 1933 and was subsequently barred from any further unregistered securities offerings involving its native token.
The SEC commissioner expressed her frustration over the commission’s approach, especially in light of many ongoing crypto fraud cases that are yet to be resolved. “The Commission’s requested remedies were entirely out of proportion to any harm,” she stated.
The XRP Community Steps Up
Pro-XRP lawyer John Deaton also agreed with Alderoty’s call for an amicus brief. Deaton emphasized that the voice of 75,000 individual token holders should resonate in the courtroom, advocating for a more informed and insider perspective.
“The SEC’s conduct isn’t just disconcerting; it’s disheartening for innovators in a field that promises to revolutionize everything from finance to governance,” Deaton explained.
The Fall of LBRY: A Cautionary Tale
LBRY, which had built a functional blockchain with real-world applications, ultimately shut down due to what it cited as “financial burdens and regulatory pressure.” Its demise is a cautionary tale for other crypto platforms caught in the confusing web of U.S. securities laws.
This endorsement from Ripple’s CLO and the XRP community is significant, given Ripple’s ongoing lawsuit with the SEC. As Alderoty and Deaton suggest, perhaps it’s time for the crypto community to take the law into its own hands—via the courts, of course.
Source: Read Full Article