Stuart Alderoty, Ripple's Chief Legal Officer (CLO), has criticized Gubir Grewal, the head of the Enforcement Division at the U.S. Securities and Exchange Commission (SEC), for his views on the crypto industry and SEC's regulatory procedures.

SEC’s Grewal Faces Backlash

During the "SEC Speaks" event, Grewal expressed disapproval of the crypto sector, alleging that it is flouting regulations and attempting to evade SEC oversight. Despite facing criticism for being excessively focused on rule enforcement, Grewal defended the SEC's use of the Howey test, which determines if an asset is a security, highlighting the agency's consistency in applying this assessment.

Ripple CLO Criticizes ED

In response to Grewal's statements, Alderoty highlighted cases where federal courts have reprimanded the SEC for its handling of crypto-related matters. He referenced instances where courts found the SEC's actions to be excessive and lacking in honesty.

Alderoty pointed to scenarios where the SEC faced repercussions in the DEBT Box case and the Ripple lawsuit, emphasizing that while the SEC secured victories in some aspects of the cases, the court ruled that Ripple's XRP is not a security.

Moreover, Alderoty drew attention to the SEC dropping significant charges against Ripple executives, pointing out weaknesses in the SEC's initial allegations.

Evaluation of SEC's Guidance

Alderoty raised concerns about the SEC's modifications to the Howey test and referenced criticism from a former legal expert at the SEC who found the changes to be perplexing.

Alderoty urged the SEC to acknowledge their missteps and work towards improving their standing with the crypto industry.

Overall, Alderoty's comments underscore the constant tensions between the SEC and the crypto community, highlighting the crucial need for clear and consistent regulatory enforcement.