The post Ripple CLO Spotlights 4 Takeaways from Testimony Against SEC appeared on BitcoinEthereumNews.com.

Ripple CLO Stuart Alderoty has weighed in on a testimony before the U.S. House Financial Services Committee on September 18, 2024, by Lee Reiners. The lecturer at Duke University, critiqued the crypto industry and supported the U.S. Securities and Exchange Commission’s (SEC) enforcement actions but also acknowledged the agency’s limitations. Alderoty weaponized these statements against the SEC. Ripple CLO Offers Key Takeaways From Reiners’ Testimony Alderoty, responding to the testimony, wrote on X (formerly Twitter), that while Reiners was a “pro-SEC/anti-crypto witness,” his testimony still underscored some of the SEC’s shortcomings. The Ripple CLO, hence, highlighted four major takeaways from Reiners’ statements.First, Reiners called attention to a significant regulatory gap in the crypto spot market. While the SEC regulates securities and the Commodity Futures Trading Commission (CFTC) oversees derivatives, neither body currently regulates crypto spot markets. “Congress needs to step in and close this gap,” Reiners urged. He also emphasized that exchanges need to be held accountable under federal law. Alderoty seized on this point, agreeing that only Congress can close the gap, echoing long-standing concerns within the crypto industry about the lack of clear spot market regulation. Second, Reiners’ testimony touched on the ongoing debate surrounding decentralization, particularly in relation to securities laws. Alderoty noted that the law professor acknowledged the limits of decentralization as a regulatory tool. Reiners referenced a “mystical decentralization threshold,” a point also criticized by the crypto community. Prof. @leereiners testified before Congress recently, and while there’s much to critique, even this pro-SEC/anti-crypto witness acknowledged the SEC’s loss in the Ripple case, as well as:1. A regulatory gap in the crypto spot market that only Congress can close.2. Securities… — Stuart Alderoty (@s_alderoty) September 20, 2024 According to the Ripple CLO, this was a nod to former SEC Director William Hinman’s controversial 2018 speech. This…

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Filed under: News - @ September 20, 2024 5:16 pm