Amid Shifting Political Winds, Ripple CLO Labels Gary Gensler As a Struggling Liability

Ripple’s Chief Legal Officer, Stuart Alderoty, characterized U.S. Securities and Exchange Commission Chair Gary Gensler as “struggling liability” amid increasing speculation about the potential approval of spot ether exchange-traded funds.

In response to a conversation about the SEC becoming a prominent topic of pre-election discussion, Alderoty expressed on X that “Gensler overplayed his hand.”

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“He believed crypto was an easy target,” Alderoty mentioned, and added, “He enjoyed being the person that everyone loved to hate. He believed he was beyond Congressional oversight. That’s all changed. He’s now a struggling political liability.”

This viewpoint, which has been echoed by many others in the crypto industry for a long time, comes after an apparent and sudden change in sentiment from Democrats ahead of November’s elections.

Some argue that the SEC’s abrupt request for exchanges to modify spot ether ETF filings indicates a desire to appear more crypto-friendly as the sector becomes increasingly important in the pursuit of votes.

“It’s a completely unprecedented situation, which means it’s entirely political,” a source familiar with the matter informed The Block, specifically referring to the agency’s sudden request to file amendments.

This was underscored by yesterday’s announcement that former U.S. President and current Republican candidate Donald Trump’s campaign is now accepting cryptocurrency.

Ripple’s history with the SEC

The opinion of Ripple’s CLO may not be surprising. The high-profile crypto-related project has long been under the scrutiny of the SEC, with the SEC recently asserting that Ripple should pay over $2 billion in fines for selling to institutional investors.

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Ripple, on the other hand, contends that the penalty should be closer to $10 million. However, the SEC believes a fine of this magnitude “would incentivize other crypto asset issuers to violate Section 5 by making it an extremely profitable endeavor, and thus deprive investors of the disclosures Congress mandates, as a mere ‘cost of doing business.'”

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Dr. Olajide Samuel juggles the demands of medical studies with a passion for cryptocurrency. A seasoned blogger, Olajide shares his vast global knowledge of the crypto space, offering insights to enthusiasts. Despite his busy schedule, his commitment to crypto remains strong, and he actively seeks ways to contribute to its future.