Ripple Lawyer Argues SEC Chair Gensler Has Prejudged Crypto Asset Cases

Recently, Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC), discussed why he believes crypto assets other than bitcoin are securities in an in-depth interview with New York Magazine’s Intelligencer and in an in-depth interview with the New York Magazine Intelligencer. However, Ripple’s chief legal officer, Stuart Alderoty, argues that Gensler must “recuse himself from voting on enforcement matters that raise that issue. “Alderoty claims that the SEC chairman is “prejudging the outcome.”

A recent interview with SEC Chairman Gary Gensler may have negative implications for U.S. securities regulators as he has been accused of publicly discussing his bias against the outcome. Bitcoin.com News recently published an article in New York Magazine’s Intelligence reporter Ankush Khardori in an interview in which Gensler expressed his views. In the interview, the SEC Chairman explained why he considers most digital assets other than Bitcoin (BTC) in today’s crypto economy to be securities.

Stuart Alderoty, Ripple’s Chief Legal Officer,said of Gensler’s public statements after an interviewtweeted. Ripple is currently in a legal dispute with the SEC to determine whetherXRPtokens are registered with the SEC; whether XRP tokens are securities; Alderoty tweeted, “Crypto lawyer PSA: Chair Gensler has once again declared that all cryptocurrencies except . BTCis an unregistered security. He has already foreseen the outcome and has had to recuse himself from voting on any enforcement case raising the issue, Antoniu v. SEC (8th Cir. 1989).”

Antoniu v. SECinvolved a matter in which a man named Antoniu appealed a decision by the SEC preventing him from working as a securities broker. Antoniu was joined in the decertification proceeding by SEC Commissioner Troy Paredes argued that this created the appearance of impropriety in the case. The court ruled in favor of Antoniu, holding that the commissioner’s statements showed that he had already determined the facts of the case before the hearing. The case established the significance of recusal by SEC officials under certain circumstances to prevent the appearance of impropriety.

Jeremy Hogan, an attorney and partner at Hogan &, argued against Auguston. Hogan responded to Alderoty’s tweet by sarcasticallyandsaying that Chairman Gensler “is clearly speaking not as the head of the SEC, but as a long distance runner and orange juice enthusiast. So, it’s okay.” Other Twitter users on the Alderoty thread asked their lawyers if they would take legal action, and oneaskedOne asked, “Will (Stuart Alderoty) approach this from a legal perspective as well, like filing a motion or something to force Gensler to step down?”

However, not everyone agrees with Ripple’s legal staff, with one calling the opinion “ridiculous.” Chairman Gensler does not prejudge the merits of any particular case. And even if such an argument could be made (which is ridiculous), it would only need to recur from the enforcement AP appeal, not his involvement in the vote to allow enforcement,” that personrespondedto Alderoty’s tweet. Antoniu v. SEC case, invalidated all proceedings in which the Commissioner participated and directed U.S. securities regulators to conduct a de novo review of the evidence without Troy Paredes’ involvement.

What do you think of SEC Chairman Gensler’s comments regarding cryptocurrencies and securities and the debate over Ripple’s request for his recusal? Do you think Gensler’s comments show a bias against crypto assets or do you think he is simply expressing his opinion on the issue? Let us know your thoughts in the comments section below.

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