- Ripple’s legal chief proposes reforms for the SEC’s next leader to rebuild crypto trust.
- Keeping pro-crypto commissioners and ending hostile enforcement are key focal points.
Ripple’s Chief Legal Officer, Stuart Alderoty, proposed some “table stakes” for the next SEC Chair to address the agency’s contentious relationship with the crypto industry.
The recommendations follow Gary Gensler’s announcement that he will step down on January 20, as Donald Trump takes office.
His advice includes ending all non-fraud crypto litigation immediately, including the SEC’s multi-year suit against Ripple.
A federal court ruled earlier this year that while Ripple violated securities law through institutional sales of XRP, retail sales on public exchanges did not.
Ripple was fined $125 million, far below the SEC’s initial demand, and the regulator has since appealed.
Alderoty called the SEC’s decision to appeal “disappointing but not surprising,” adding that it prolongs “what’s already a complete embarrassment for the agency.”
The legal chief also suggested retaining pro-crypto Commissioners Hester Peirce and Mark Uyeda to ensure balanced oversight.
Peirce, often called “Crypto Mom” for her strong dissenting opinions on SEC crypto enforcement, has been a favourite among the industry as a potential SEC chair.
However, insiders indicate she is unlikely to take the role, with her office joking that her post-agency ambitions lean more toward beekeeping than politics.
Uyeda, who has frequently partnered with Peirce to criticise the SEC’s crypto approach, has expressed openness to leading the agency.
He recently described the SEC’s regulatory strategy as a “disaster for the whole industry” and called for an end to the current wave of enforcement-led governance.
Alderoty also urged the SEC to collaborate with Congress and other financial regulators to establish clear and simple crypto rules, without presuming the SEC has primary jurisdiction over the sector.
Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.