During a Senate hearing, Ripple’s Chief Legal Officer (CLO), Stuart Alderoty, criticized the Chairman of the US Securities and Exchange Commission (SEC), Gary Gensler, for claiming that certain cryptocurrencies can be classified as securities. Alderoty argued that this interpretation is outrageous and a misinterpretation of the law. He also highlighted a recent legal victory for Ripple, where a ruling clarified that Ripple’s native token, XRP, should not be classified as a security. Ripple’s CEO, Brad Garlinghouse, believed that this ruling could set a positive precedent for other digital tokens in the US. Gensler, however, emphasized that the SEC’s regulatory oversight could extend to a wide range of crypto assets, although he clarified that Bitcoin falls under the jurisdiction of a different agency, the Commodity Futures Trading Commission. The ongoing classification debate surrounding cryptocurrencies has significant implications for the industry’s regulatory treatment and potential legal consequences. Ripple’s legal victory adds complexity to the crypto regulatory landscape and may influence how the SEC approaches similar cases in the future. This ongoing discussion will impact the future of cryptocurrency adoption and innovation within the United States.
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