Ripple’s Top Lawyer Names Main Problem with SEC’s Recent U-Turn

Stuart Alderoty, Ripple’s top lawyer, has taken to the X social media platform to weigh in on the U.S. Securities and Commission’s most recent U-turn. 

The regulatory agency recently walked back on its claim that several popular cryptocurrencies, including Solana (SOL) and Cardano (ADA), are unregistered securities. 

The U-turn, which was revealed in a recent filing in the Binance case, sent shockwaves across the cryptocurrency community, which remains at odds with the SEC. 

Still, there is no clarity. As reported by U.Today, the SEC also claimed that these tokens were unregistered securities in another lawsuit against the Coinbase exchange. 

As reported by U.Today, Ripple CEO Brad Garlinghouse recently slammed the agency, accusing it of “festering” more confusion with its haphazard approach to regulation. 

In turn, Alderoty pointed out that the other tokens would be left out to dry in the Coinbase lawsuit. “This isn’t how to regulate,” Alderoty added.  

What many got wrong about the SEC’s filing 

While the SEC has shelved its allegations in the Binance lawsuit, it does not mean that SOL, ADA, and other tokens are already off the hook. 

As explained by Justin Slaughter, policy director at Paradigm, many are, in fact, “overreading” the most recent filing. “The SEC is not saying that it will no longer take the position that Solana and the other tokens are not securities, but merely that it won’t see to prove such tokens are securities in this, the Binance case,” he explained in a social media post. 

As reported by U.Today, SEC Chair Gary Genlser has repeatedly stated that many tokens are unregistered securities.