Stuart Alderoty, general counsel at Ripple, took aim at the U.S. Securities and Exchange Commission Chair after the latter misstated that the Supreme Court test is set to determine whether or not a token is an unregistered security.
“Was it intentional or does he really not know the law? Which is worse?” Alderoty tweeted.
On Thursday, Gensler appeared before the U.S. Senate Banking Committee to defend the agency’s somewhat controversial stance on cryptocurrency regulation.
During an exchange with cryptocurrency-friendly senator Pat Toomey (R-PA), Gensler stated that there is no one spectrum of decentralization since many factors have to be taken into consideration.
Referring to the Supreme Court, the SEC head says that it is about developers in the middle, regardless of whether or not the token is on thousands of computers.
That’s not what the Supreme Court is looking at. It’s not about the token being on a thousand computers. It’s about the group of developers in the middle.
Earlier this month, Alderoty criticized the SEC for its alleged attempt to orchestrate a “political power grab” with its approach to cryptocurrencies after Gensler dismissed the idea that crypto requires specific rulemaking.
Ripple has been at loggerheads with the SEC for years after the company was sued for violating securities laws with its XRP sales.
Earlier this week, the SEC finally filed its motion for summary judgment against Ripple defendants, meaning that the lawsuit is inching closer to a resolution.