SEC contacted by Stuart Alderoty, Ripple CLO, in response to recent developments
Ripple’s Chief Legal Officer, Stuart Alderoty, has made a bold statement, suggesting that SEC Chair Gary Gensler is putting his position at risk by becoming a “struggling political liability.” Alderoty criticized Gensler’s approach, stating that he initially thought cryptocurrency was an easy target but ultimately overplayed his hand. This criticism comes at a time when there are rumors circulating about the SEC potentially approving a spot Ethereum exchange-traded fund (ETF), a move that many in the crypto industry believe is driven by political motives to court voters.
This situation has caught the attention of Chris Brummer, a professor of law and Faculty Director of Georgetown’s Institute of International Economic Law, who noted that this may be the first time the SEC has become a subject of presidential politics.
Norman Wooding, the CEO and Co-Founder of SCRYPT, a Switzerland-based and regulated crypto financial service provider, believes that the potential approval of a spot Ethereum ETF would be a catalyst for other crypto-related products and innovations. He also believes that it would attract a larger pool of institutional investors, leading to significant capital inflows into Ethereum and potentially benefiting the entire altcoin market.
Despite the SEC’s previous stance against approving new crypto-related spot ETFs, the speculation surrounding the potential approval of a spot Ethereum ETF has gained traction. This has intensified the competition between the Biden administration and former president Donald Trump, particularly regarding their differing approaches to crypto regulation. As the 2024 elections approach, the clash between Trump’s crypto-friendly stance and Biden’s hesitancy on the matter becomes a focal point in a heated political battle. While the Biden administration has indicated its commitment to adhering to the SEC’s stance, pressure from crypto voters seems to be mounting as the SEC prepares to potentially approve spot Ethereum ETFs in the near future.
In light of these developments, entrepreneur Mark Cuban has suggested that the SEC’s actions could impact Biden’s chances of re-election, especially as Trump embraces cryptocurrency.
