Ripple CLO Stuart Alderoty calls SEC’s Gensler ‘struggling political liability’

Amid growing spot Ethereum ETF rumors, Ripple CLO Stuart Alderoty calls SEC Chairman Gensler “struggling with political responsibility” and suggests political motivations behind potential SEC moves.

In what could be a turning point for the U.S. Securities and Exchange Commission (SEC), Ripple’s Chief Legal Officer Stuart Alderoty argues that SEC Chairman Gary Gensler is risking his position by engaging in a “fight for political responsibility.”

Gensler overplayed his hand. He thought crypto was an easy target. He enjoyed being the guy everyone loved to hate. He thought he was above Congressional control. All gone. He now struggles with political responsibility. https://t.co/Uy6Mwed6hJ

— Stuart Alderoty (@s_alderoty) May 22, 2024

In an X post on May 22, Alderoty criticized Gensler’s approach, saying he “thought cryptocurrency was an easy target” but ended up “overplaying his hand.” Alderoty’s statement comes amid rumors that the SEC will potentially approve a spot Ethereum exchange-traded fund (ETF); This move was perceived by many in the crypto industry and beyond as a bid to deceive voters.

As law professor and Faculty Director of the Georgetown Institute for International Economic Law Chris Brummer noted in an X post, this may be “the first time the SEC has become the subject of presidential politics.”

“I don’t recall any presidential candidate mentioning the SEC Chairman’s name. “I also do not recall a sitting President ever threatening in advance that Congress would veto the SEC bill.”

Chris Brummer

Norman Wooding, CEO and Co-Founder of Swiss-based and regulated crypto financial services provider SCRYPT, said in a comment to crypto.news that the potential approval would serve as a “catalyst for other crypto-related products and innovations.” He added that approval would “likely attract a larger pool of institutional investors, drive significant capital inflows into Ethereum, and potentially boost the entire altcoin market.”

Speculation regarding spot Ethereum ETF approval has gained traction despite the SEC’s previous stance against greenlighting new crypto-related spot ETFs. This development has intensified the rivalry between the Biden administration and former president Donald Trump, especially in the context of contrasting approaches to crypto regulations.

As the 2024 elections approach, the conflict between Trump’s crypto-friendly stance and Biden’s hesitations is becoming the focal point of heated political struggle. Despite indications that the Biden administration remains committed to adhering to the SEC’s stance on crypto regulation, pressure from crypto voters appears to be intensifying as the SEC prepares to potentially approve spot Ethereum ETFs in the coming weeks.