Ripple Criticizes SEC Official Gubir Grewal in the Midst of Crypto Regulation Debate

Ripple’s Chief Legal Officer (CLO), Stuart Alderoty, engaged in a fiery exchange with Gubir Grewal, head of the Enforcement Division at the U.S. Securities and Exchange Commission (SEC), at the “SEC Speaks” event. Grewal criticized the crypto industry for evading regulations and defended the SEC’s use of the Howey test to identify securities. However, Alderoty rebutted Grewal’s claims by citing instances where federal courts had admonished the SEC for its handling of crypto-related cases. He highlighted the court’s rulings in the DEBT Box case and the Ripple lawsuit, where the SEC’s actions were rebuked. Alderoty also expressed concern over the SEC’s revisions to the Howey test, echoing worries expressed by the SEC’s former legal expert. He called for the SEC to acknowledge its shortcomings and improve its relationship with the crypto sector. The clash between Alderoty and Grewal underscores the need for clear and consistent regulatory guidance in the crypto space.