As the current SEC Chair Gary Gensler's exits, Stuart Alderoty, the Chief Legal Officer of Ripple, has proposed table stakes to smoothen the regulator’s relationship with the crypto market.
Last week, Gensler announced that he would be resigning from the position on January 20 as Donald Trump enters the White House.
Alderoty’s advice includes ending non-fraud crypto litigation which means the SEC has to forego its lawsuit its ongoing lawsuit against Ripple. Earlier this year, a US federal court had ruled that Ripple didn’t violate securities law by allowing retail sales of XRP on public exchange although the company’s institutional sale of the token was a violation.
The court asked Ripple to pay a fine of $125 million but the SEC wasn’t happy with it. The regulator appealed against the judgement as the fine was lower than its demand.
This caused a spike in XRP prices then. Following Alderoty’s advice, the token is rallying again. At the time of the appeal, Alderolty alleged the action was “disappointing but not surprising”. He further explained how it will increase the embarrassment of the agency as the matter runs for a longer period.
Additionally, Ripple’s legal chief also suggested that the SEC should retain current commissioners like Mark Uyeda and Hester Peirce due to their pro-crypto stance. Peirce is an industry favourite who is often regarded as the “Crypto Mom” for her dissent against SEC’s crypto enforcement. But she isn’t keen on remaining in office and is likely to stay away from politics.
However, Uyeda has expressed his desire to head the agency. Recently, he called SEC’s crypto regulatory approach disastrous for the industry, calling for an end to enforcement-led governance.
The Ripple legal chief also wanted simplified and clear crypto rules and for this, he urged that the SEC work with other financial regulators and Congress. He hopes that the crypto rules won’t make the regulator have primary jurisdiction over the sector.
At the time of writing on November 25, XRP was up 10.02% in the last 24 hours to trade at $1.47 while its trading volume has declined 6.19% to reach $11.24 billion and the market cap rose to $83.81 billion.