Stuart Alderoty, Ripple’s Chief Legal Officer with more than 30 years of legal expertise, has called out the SEC’s chairman, Gary Gensler, for his evasive answers on a recent congressional hearing at the House Financial Services Committee.
Alderoty: “Gensler Didn’t Know What Hit Him Until It Was Too Late”
Through his X (Twitter) account, Alderoty questioned Gensler’s evasive answer after Rep. Ritchie Torres cross-examined the chairman, which turned into a series of roundabouts where he reminded Gensler to answer his questions directly and appropriately.
A must watch. For hours Mr. Gensler smugly evaded question after question (even laughing about how rich he is) until Rep. Torres took him out with a command of the law and a touch of South Bronx street sense. Gensler didn’t know what hit him until it was too late. https://t.co/RzAK4inkHE
— Stuart Alderoty (@s_alderoty) September 28, 2023
Rep. Torres asked several basic questions, such as whether an investment contract requires a contract, which Gensler struggled to answer. Torres classified his elusive answers as “deafening and damning”
Meanwhile, Gensler stuck to his speech of bashing cryptocurrencies and the industry, particularly criticizing how some crypto companies handle customers’ assets.
A Well-Known Approach
Another thing that shocked Alderoty was how blatantly Gensler laughed about his wealth. The XRP community was naturally outraged, with one user questioning if Gensler is more “motivated by making a personal fortune than serving the public.”
The way Gensler answers Rep. Torres is not uncommon in these types of conferences, especially when the law is involved.
This elusive, coded form of speaking, famously known as “Fed Speak,” is intended to provide ambiguous statements with a lack of substance, as long as it sounds like the person is answering the question when, in reality, they’re just creating obfuscation.
That said, when confronted again by Rep. Torres, who was clearly annoyed at this point, Gensler affirmed he answered his questions “consistently.”
Is The SEC Failing as an Institution?
This latest testimony puts Gensler and his leadership at the SEC in a very questionable position, which many consider reckless, including lawyers, politicians, and even SEC commissioners.
What’s more, lawsuits against Gensler and the SEC are piling up. This month, at least six financial trade associations sued the SEC over an arbitrary and capricious new policy called Private Funds Adviser Rule.
Alderoty is one of the many lawyers criticizing the agency’s recent moves. John Deaton, a pro-Ripple lawyer, recently stated that the SEC is the biggest threat to retail investors. This was after the SEC objected to the collaboration between Coinbase and the infamous Celsius Network, which aimed at helping make Celsius customers whole.
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