“Gary Gensler Will Lie to Congress Tomorrow”: Ripple Legal Chief Slams SEC Chair Ahead of Hearing

Ripple’s Chief Legal Officer, Stuart Alderoty, has confidently made a bold assertion in anticipation of the upcoming U.S. House of Representatives Committee on Financial Services hearing scheduled for September 27, 2023. Alderoty predicts that Gary Gensler, the Chairman of the U.S. Securities and Exchange Commission (SEC), will maintain his position that XRP does not adhere to investment regulations.

Read on to know more.

Gensler’s Crackdown Ignites Debate

Gary Gensler’s strict enforcement of U.S. investment regulations within the cryptocurrency sphere has ignited fervent debates among members of the crypto community.

Earlier in July 2023, Judge Torres said that when XRP tokens were sold to everyday people, it wasn’t like selling investment stuff, which goes against what the SEC has said for a long time. 

Alderoty, talking about this decision, said, “The head of the SEC will go to Congress soon and will lie by saying there’s something called a ‘crypto investment market,’ and he’ll say that tokens themselves are investment deals.”

This argument arose after Gary Gensler made a statement in September 2023 during a Senate me­eting, highlighting that the crypto world has lots of cheating and bad behavior.

Also Read: Gary Gensler’s Crypto Crackdown Under Fire: What’s Expected on the September 27th Hearing?

XRP and the Howey Rules

Alderoty underscored a key aspect of Judge Torres’s ruling, contending that XRP, as a digital token, does not necessarily fall under the purview of investment deals, transactions, or plans governed by the Howey rules for investment agreements.

In a discussion before the meeting, Gary Gensler reiterated his commitment to refrain from commenting on ongoing legal disputes, including the XRP lawsuit and the Grayscale lawsuit concerning Bitcoin investments.

Crypto Regulation: Debates Go On…

The debate surrounding cryptocurrency continues to gain momentum, as regulators and members of the crypto community express conflicting viewpoints. The meeting coming up will thus, be crucial.

Read More: XRP Lawsuit: Former White House Official Joins Ripple Amid Regulatory Battle with the SEC