Recently, Gary Gensler, Chairman of the US Securities and Exchange Commission (SEC), weighed in in a detailed interview with New York Magazine’s Intelligencer on why he believes non-monetary crypto assets bitcoin are values. However, Stuart Alderoty, Ripple’s legal director, argues that Gensler should “recuse himself from voting on any enforcement case that raises that issue.” Alderoty insists that the SEC chairman “has prejudged the outcome.”
Lawyer Sparks Twitter Discussion Over SEC Chairman’s Comments On Cryptocurrency And Securities
SEC Chairman Gary Gensler’s recent interview may have negative implications for the US securities regulator as it has been accused of publicly discussing its bias on the outcome. Bitcoin.com News recently reported on Gensler expressing his views during an interview with New York Magazine Intelligencer reporter Ankush Khardori. During the interview, the SEC chairman explained why he sees most digital assets other than bitcoin (BTC), in today’s crypto-economy as securities.
People called us crazy for saying the SEC thought anything but Bitcoin was a security, but now Gensler says so publicly. pic.twitter.com/Q9wFjIsNH7
—LBRY🚀 (@LBRYcom) February 28, 2023
On February 27, 2023, Ripple’s chief legal officer, Stuart Alderoty, tweeted about Gensler’s public statements after the interview. Ripple is currently in a legal dispute with the SEC to determine if XRP tokens are values or not. Alderoty’s tweet read: “PSA Crypto Advocate: Chairman Gensler has once again stated that all cryptocurrencies except BTC They are unrecorded values. You must now abstain from voting on any enforcement case that raises that issue, as you have already prejudged the outcome. Antoniu v. SEC (8th Cir. 1989)”.
anthony v. SECOND it dealt with a man named Antoniu who appealed an SEC decision that prevented him from working as a stockbroker. Antoniu argued that SEC Commissioner Troy Paredes’ involvement in the debarment process clouded the case with the appearance of impropriety. The court ruled in favor of Antoniu, stating that the commissioner’s statements indicated that they had already established the facts of the case before hearing it. The case established the importance of recusal by SEC staff members in specific situations to avoid the appearance of impropriety.
Jeremy Hogan, an attorney and partner at Hogan & Hogan, sarcastically responded to Alderoty’s tweet. stating that Chairman Gensler was “obviously speaking not as head of the SEC but in his capacity as a long-distance runner and lover of orange juice. So, he’s fine.” Other Twitter users in the Alderoty thread asked the lawyer if he would take legal action, with one person. asking, “Will you also address this from a legal point of view, (Stuart Alderoty)? How to file motions or whatever is necessary to force Gensler to recuse himself?
However, not everyone shared the same opinion as Ripple’s legal officer, with one person calling the opinion “absurd.” “Chairman Gensler has not prejudged the merits of any particular case. And even if one could make that argument (which is ridiculous), it would only require the recusal of an enforcement PA appeal, not your participation in voting to authorize an enforcement action,” the individual said. answered to Alderoty’s tweet. Regarding the case Antoniu v. SEC, the court struck down all proceedings involving the commissioner and directed the US securities regulator to conduct a de novo review of the evidence without the involvement of Troy Paredes.
What do you think about the debate on SEC Chairman Gensler’s statements on cryptocurrencies and securities, and Ripple’s recusal request? Do you think Gensler’s comments demonstrate bias against crypto assets, or does he think he is simply expressing his opinion on the matter? Let us know your thoughts on it in the comments section below.
image credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or a solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
