Regulation
Ripple CLO Criticizes Gary Gensler’s Justification For Crypto Lawsuits
Ripple Chief Legal Officer (CLO) Stuart Alderoty has criticized the US Securities and Exchange Commission (SEC) Chair Gary Gensler following his attempt to justify the crypto lawsuits that the Commission has instituted. The Ripple CLO’s statement has come amid speculations that Gensler could soon resign as the SEC Chair.
Ripple CLO Criticizes Gary Gensler’s Claim On Crypto Lawsuits
In an X post, the Ripple CLO criticized Gensler’s attempt to justify his four-year-long political crusade to destroy crypto by claiming he just continued what Jay Clayton began. Stuart Alderoty states this is like “burning down the house” and pleading innocence by arguing that Clayton lit the match.
Alderoty was referring to Gary Gensler’s speech in which he discussed the crypto industry. Gensler stated that when he arrived in 2021, the Commission under Jay Clayton had already brought 80 actions, including the Ripple case. The US SEC Chair remarked that this lawsuit was against participants in the crypto markets who were not following the “common-sense rules” of the road.
However, the Ripple CLO believes that the fact that Clayton instituted these lawsuits doesn’t justify all that Gensler has done in his four years as the SEC Chair to hinder the crypto industry’s growth. Gensler is known for his anti-crypto stance and has argued that most crypto assets are securities.
Interestingly, Gensler also hinted in that speech that he would likely resign soon enough as the SEC Chair. Individuals like former SEC official John Reed Stark have called on Gensler to resign since Donald Trump won the US presidential elections.
Meanwhile, the SEC looks to be getting a taste of its medicine. 18 US state attorney generals have filed a lawsuit accusing the SEC of a constitutional overreach in crypto regulation.
The Next SEC Chair Will Be Pro-Crypto
Amid the Ripple CLO’s statement, journalist Eleanor Terrett has confirmed that the next US SEC Chair will be pro-crypto. However, she suggested that the crypto industry and community should focus more on who becomes the next Commodity Futures Trading Commission (CFTC) Chair.
This came as she cited sources who told Fox Business that the Donald Trump administration is looking to give the CFTC more responsibility regarding crypto regulation. She added that it is unclear how the CFTC will go about this, but it will require more funding than it currently has.
Meanwhile, it is worth mentioning that Ripple CEO Brad Garlinghouse recently expressed enthusiasm about the shifting regulatory landscape. Ripple CLO Stuart Alderoty had also recently called on Donald Trump to work towards fulfilling his promise of making the US the crypto capital by ending the SEC’s regulation-by-enforcement approach.
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Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover and a part-time degen.
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The U.S. Attorney’s Office in Manhattan plans to reduce its focus on cryptocurrency-related crimes. This decision follows a series of major legal victories, according to Scott Hartman, co-chief of the securities and commodities task force at the Southern District of New York (SDNY). These include the high-profile conviction of Sam Bankman-Fried, founder of FTX.
Manhattan US Attorney to Focus Less on Crypto Fraud Amid Leadership Shift
The Manhattan US Attorney’s Office will now slow down on enforcing cases of cryptocurrency scams after it had increased its activity in the previous year. Scott Hartman made this admission during a conference held in New York stating that fewer prosecutors will now be focusing on these kinds of crimes.
He mentioned that the office had dealt with many of the severe fraud issues arising from the market volatility during the 2022 cryptocurrency winter.
Moreover, Hartman clarified that the reduced focus reflects the office’s strategic realignment. This shift comes as other regulatory agencies, such as the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), maintain their active roles in monitoring crypto regulations.
Ex-SEC Chair Jay Clayton To Lead Manhattan Attorney’s Office
The cuts in resources for crypto cases occur when there is likely to be a change in leadership at the Manhattan US Attorney’s Office. The new front-runner for the position of U.S. Attorney once Trump gets into office is former SEC Chair, Jay Clayton.
Clayton, who was director of the SEC from 2017 to 2021, took a less confrontational stance than current SEC Chair Gary Gensler did. Notably, the crypto community witnessed a heated debate over the SEC leadership criticizing the current administration approach. As such, several crypto enthusiasts including ex-SEC official John Reed Stark demanded that Gary Gensler resign.
The appointment of Clayton suggests a potential recalibration of priorities within the Manhattan US Attorney’s Office. As the office changes its leadership it is expected that it will shift its attention to other general issues concerning securities and commodities.
Even more so, the Manhattan US Attorney’s Office has hit success in several cases involving the crypto business, among them that of SBF, the former head of FTX. All these legal achievements have defined a significant stage in the fight against crypto fraud.
Hartman noted that the successful handling of major cases allowed the office to adjust its allocation of resources. Moving forward, fewer prosecutors will be tasked with investigating cryptocurrency crimes as the office prioritizes other enforcement.
Despite reducing its focus, the Manhattan US Attorney’s Office emphasized ongoing collaboration with agencies like the SEC and CFTC. Hartman acknowledged that these regulatory bodies ensure continued oversight and enforcement against unlawful activities. This cooperative approach aims to maintain accountability while enabling the office to concentrate on a wider range of legal priorities.
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A Dogecoin lawsuit against Elon Musk has come to a close after investors decided to withdraw their appeal. The case, which accused Musk of fraud and insider trading related to the cryptocurrency, had been dismissed earlier this year.
The withdrawal also includes a request to drop related sanctions against Musk’s lawyers, marking the end of a high-profile legal battle in federal court.
Dogecoin Lawsuit Against Elon Musk and Tesla Ends
The Dogecoin lawsuit, originally filed by Dogecoin investors, alleged that Musk and his electric car company Tesla engaged in fraudulent activities to manipulate Dogecoin’s price. Investors claimed Musk’s tweets, public appearances, and statements—including on NBC’s “Saturday Night Live”—were used to profit at their expense.
The investors initially sought $258 billion in damages, amending their complaint four times over two years. However, on August 29, U.S. District Judge Alvin Hellerstein dismissed the case, stating that reasonable investors could not establish securities fraud based on Musk’s public statements. The judge noted that Musk’s comments, such as describing Dogecoin as the “future currency of Earth,” could not be reasonably interpreted as market manipulation or insider trading.
Subsequently, this week, the investors have formally withdrew their appeal and their motion to sanction Musk’s legal team for alleged misconduct. Similarly, Musk and Tesla dropped their motion to sanction the investors’ lawyer for what they called a “frivolous” and ever-changing lawsuit. Both parties as a result filed a stipulation to dismiss the case in Manhattan federal court on Thursday night, pending final approval by Judge Hellerstein.
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Amid the ongoing race to replace Gary Gensler as the Chairman of the US Securities and Exchange Commission (SEC), Chris Giancarlo has dispelled rumors that he’s under consideration for the job. Known as “Crypto Dad,” Chris Giancarlo’s name popped up as one of the high-profile regulators capable of replacing the US SEC chair.
US SEC Chair and the Chris Giancarlo Clarification
Besides the general change in leadership that comes with a new administration, Donald Trump plans to fire Gary Gensler right from his first day in office. With Trump’s victory over Kamala Harris, it becomes evident that Gensler is in his last days in office.
Commenting on the trend and his prospect for the role, Chris Giancarlo said he once cleaned up Gensler’s mess at the Commodity Futures Trading Commission (CFTC) and has no plans to do it again. It is worth noting that before taking up the US SEC Chair position, Gensler served as the CFTC Chairman from May 26, 2009, to January 3, 2014.
Chris Giancarlo took over from him as CFTC Commissioner on June 16, 2014, for a term expiring on April 13, 2019. He bagged President Donald Trump’s nomination for a full-time role on August 3, 2017. Having served in the same capacity as Gensler, the Crypto Dad said the DC rumors are wrong.
As for reports that I’m in mix to run @SECGov, I’ve made clear that I’ve already cleaned up earlier Gary Gensler mess @CFTC and don’t want to have do it again. DC rumors that I’m interested in some #crypto role @USTreasury are also wrong.
— Chris Giancarlo (@giancarloMKTS) November 14, 2024
Beyond the US SEC tag, Giancarlo has also debunked claims that he’s in line for the US Treasury Secretary role.
Who Will Replace Gary Gensler?
Many named Chris Giancarlo a good fit for the SEC chairman role because of his advocacy work in the industry. As reported earlier by Coingape, even pro-XRP lawyer turned-politician John Deaton once endorsed Giancarlo for the Chairmanship role.
As Chris Giancarlo dispelled the rumors, John Deaton noted that the callout shows the damage Gensler did to both the SEC and CFTC.
With Crypto Dad ruling himself out, the top picks now include current SEC Commissioners Mark Uyeda, Hester Peirce, and Robinhood CLO Dan Gallagher, who are the leading candidates for the role. While President Trump may choose a completely new name, what the industry places a premium on is someone with a pro-crypto mindset.
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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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