Gary Gensler to Testify Before US Congress Today: Ripple CLO Details What to Expect

In a highly anticipated event, the Chief Legal Officer (CLO) of Ripple, Stuart Alderoty, commented on the upcoming testimonial by Gary Gensler, Chair of the U.S. Securities and Exchange Commission (SEC). Gensler is scheduled to present his testimony today at the United Nations House of Financial Services.

What should you expect and why is this such a big deal? Read on.

Fox Business‘s Post Causes Debate

Fox Business reporter Eleanor Terrett set the stage for this lively discussion when she shared Gensler’s thoughts on cryptocurrencies via her X platform account prior to the testimony. This move quickly ignited a heated debate among cryptocurrency enthusiasts and financial experts. Many were eager to hear Gensler’s stance on the future of digital currencies and how they would be regulated. 

Stuart Alderoty‘s Expectations

Stuart Alderoty, Ripple’s Chief Legal Officer, expressed his expectations that during Gensler’s testimony, any U.S. representative present would bring up the recent judgment delivered by U.S. District Judge Analisa Torres regarding the SEC v Ripple case.

Firstly, he comments that Gensler claiming that there exists something called a “crypto assets securities market” would be a straight lie on the face of Congressmen. 

In attachment to this, he wrote a second post where he hopes that at least one of the many US Representative Members present in the testimony will present the judgment of the Court, passed by Judge Analisa Torres, in the Ripple suit dated 13/7/23. Judge Analisa Torres held that “XRP, as a digital token, is not in and of itself “a contract, transaction, or scheme” that embodies the Howey requirements of an investment contract.” 

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

Community Reacts

Alderoty’s posts drew the attention of many verified crypto enthusiasts who shared their discontent with Gary Gensler’s stance.

One said “Why is his lies never challenged?” while another commented, “Funny how the term ‘crypto asset securities’ has just started appearing in all SECGov materials.” 

Is the SEC Refusing to Comply?

Importantly, it’s worth noting that the SEC is not challenging the court’s determination that XRP is not a security. Instead, the SEC is directing its scrutiny towards Ripple’s sales of XRP. The regulatory body is investigating whether Ripple violated securities laws through these secondary sales. This distinction is pivotal, as it highlights that the SEC’s case against Ripple isn’t centered on XRP’s classification as a security but rather on Ripple’s alleged unlawful activities related to the token.

Read More: Crypto vs. SEC: Gary Gensler Vows to Stick to Tough Crypto Rules in Senate Hearing?