«Why enough is enough»: Stuart Alderoty pointed to the need to eliminate the regulatory sludge

Ripple’s general counsel Stuart Alderoty pointed to the need to eliminate the regulatory sludge.

Ripple’s general counsel Stuart Alderoty tweeted:

4 years since the (in)famous Hinman speech, and we’re nowhere closer on knowing how to classify digital assets in the US – keeping every crypto, including ETH, in regulatory limbo. I penned some thoughts for @Fortune why enough is enough, @SECGov.

In an article on Fortune, the lawyer highlighted the need to eliminate the regulatory sludge. He noted that at first Hinman clearly indicated that XRP is a cryptocurrency. However, then the SEC filed its unfounded lawsuit, directed not only against Ripple, but, in fact, against all cryptocurrencies in the United States.

The meaning of Hinman’s speech changed dramatically after this:

In the litigation, the SEC has vacillated whether Hinman’s speech was his personal views or a signal from the SEC’s Division of Corporate Finance, but seems to be sticking to its story that it was not guidance from the commission itself. Why is the SEC fostering such uncertainty? The SEC’s jurisdiction has limits: A “securities commission” can only regulate “securities.” Like a hammer wanting everything to be a nail, the SEC is keeping everything murky so it can argue every crypto is a security. By bringing enforcement actions–or threats of potential enforcement–the SEC intends to bully, bulldoze, and bankrupt crypto innovation in the U.S., all in the name of impermissibly expanding its own jurisdictional limits.

The US needs measures that will protect innovation and consumers:

The U.S. is not the “Wild West” due to existing anti-fraud and anti-money laundering laws. Yet without a comprehensive regulatory framework, the U.S. will continue to fall further behind other responsible global economic centers. Recent bipartisan legislative efforts in Congress are promising. As recognized in President Biden’s recent Executive Order on Responsible Development of Digital Assets, with clear and practical guidance, applied evenly and fairly, the U.S. can secure its position as a global leader in the crypto industry. In the four years since Hinman’s speech that did nothing but muddy the crypto waters, the U.S. still desperately needs clear rules of the road that embrace innovation while protecting consumers and the integrity of markets.