Ripple Chief Legal Officer Stuart Alderoty believes the recent resolution of anti-money laundering violations by Binance via a settlement with the U.S. Department of Justice (DOJ) is a significant step towards aligning the crypto industry with essential legal and safety standards.
Alderoty noted in a series of tweets that major banks have previously undergone similar regulatory processes in their lifetime.
He also highlighted that there was no mention of “crypto securities” or the SEC in the lawsuit filed by the DOJ against Binance.
No mention of securities
Significantly, Alderoty pointed out that the Department of Justice (DOJ) did not imply any securities law violations by Binance or categorize the assets traded on its platform as securities.
This observation highlights a crucial distinction in the regulatory treatment of different types of digital assets.
The Ripple exec challenged the SEC’s terminology of “crypto-asset securities,” arguing that such a term lacks legal meaning and recognition, especially in light of the DOJ’s approach to the Binance case.
‘Juvenile behavior’
Alderoty’s statements also brought attention to the involvement of the Treasury and the CFTC in the Binance case, notably pointing out the absence of the SEC.
He suggested that the SEC’s absence indicates the regulator is diverging from international regulatory trends and domestic counterparts in the U.S. government under Gary Gensler’s leadership.
Alderoty likened the SEC’s behavior to that of a “petulant child,” especially in its timing of announcing a lawsuit against U.S.-based crypto exchange Kraken.
The watchdog announced the lawsuit on Nov. 20, which coincided with the DOJ’s press conference on the Binance case, a move Alderoty described as “secondhand embarrassment” due to its seemingly “juvenile” nature.
The lawsuit alleges securities violations and commingling of funds. Kraken has vehemently denied the allegations and said it will “vigorously defend” itself in court.
Alderoty’s comments highlight the complex and sometimes contentious landscape of cryptocurrency regulation. As digital assets evolve, his insights offer a critical perspective on the need for coherent and consistent regulatory approaches that balance innovation with legal compliance.
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