The prospective nomination of former U.S. Securities and Exchange Commission (SEC) General Counsel Bob Stebbins as SEC Chair has drawn criticism from prominent figures in the cryptocurrency sector, particularly from Ripple’s leadership.
Stuart Alderoty, Chief Legal Officer (CLO) at Ripple, has expressed significant reservations about Stebbins’s potential appointment to succeed current SEC Chair Gary Gensler.
The Crypto World Stands Against Stebbins
In a post on X, Alderoty shared his primary concern, which centers on Stebbins’s historical involvement with cryptocurrency regulation, specifically his participation in drafting the significant 2018 regulatory statement regarding Ethereum’s classification.
Receipt attached. pic.twitter.com/gtIeChNUgB
— Stuart Alderoty (@s_alderoty) November 18, 2024
This popular Hinman speech, which determined that Ethereum would not be treated as a security, is a contentious reference point in ongoing cryptocurrency regulatory discussions. Stebbins’s involvement has soured his reputation in the crypto world.
Many believe he played a part in the ETH Gate conspiracy. ETH Gate is used to describe the SEC’s favoritism of Ethereum over other cryptocurrencies, particularly XRP. Critics claim the SEC unfairly targeted XRP in its lawsuit against Ripple while classifying Ethereum as a non-security.
The cryptocurrency community’s apprehension about Stebbins’s potential appointment extends beyond his regulatory history. His close professional relationship with former SEC Chairman Jay Clayton has attracted particular scrutiny, especially given Clayton’s recent appointment as Manhattan’s leading federal prosecutor.
One community member stated, “We don’t need another SEC chair that was involved in picking winners and losers.” Ripple CEO Brad Garlinghouse previously described the SEC’s actions as picking winners and losers, and Stebbins was directly involved with Clayton’s administration when it initiated the lawsuit against Ripple.
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Can Stebbins Become SEC Chair?
According to former SEC official John Reed Stark’s documentation, Stebbins’s tenure at the SEC included his approval of approximately 80 enforcement actions targeting cryptocurrency operations. This record has prompted cryptocurrency legal expert John Deaton to warn against what he perceives as a potential continuation of Clayton’s regulatory approach.
Deaton expressed his concerns on X, stating that if the new administration truly wants change, “Stebbins is NOT the answer.” He noted that Clayton is pushing for Stebbins to get the job. He argued that selecting Stebbins as Clayton leads the Southern District of New York would continue Clayton’s unfavorable oversight practices.
Now that Gensler has hinted at resignation, the field of potential nominees includes Daniel Gallagher, currently serving as Robinhood’s chief legal counsel, alongside Brad Bondi, representing Paul Hastings, and Paul Atkins, who leads Patomak Global Partners as CEO.
Each candidate brings distinct perspectives on financial regulation and market oversight, and Deaton has expressed support for Brad Bondi.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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