Amid surging spot Ethereum ETF rumors, Ripple CLO Stuart Alderoty calls SEC Chair Gensler a “struggling political liability,” suggesting political motives behind potential SEC moves.
In what could be a watershed moment for the U.S. Securities and Exchange Commission (SEC), Ripple’s Chief Legal Officer, Stuart Alderoty, suggests that SEC Chair Gary Gensler is risking his position by becoming a “struggling political liability.”
Gensler overplayed his hand. He thought crypto was an easy target. He relished being the guy that everyone loved to hate. He thought he was above Congressional oversight. That’s all gone. He’s now a struggling political liability. https://t.co/Uy6Mwed6hJ
— Stuart Alderoty (@s_alderoty) May 22, 2024
In an X post on May 22, Alderoty criticized Gensler’s approach, saying “he thought crypto was an easy target,” but eventually “overplayed his hand.” Alderoty’s statement came amid rumors swirling about the SEC potentially approving a spot Ethereum exchange-traded fund (ETF), a move that perceived by many in the crypto industry and beyond as a bid to court voters.
As Chris Brummer, professor of law and Faculty Director of Georgetown’s Institute of International Economic Law, noted in an X post, this might be “the first time the SEC has become a subject of presidential politics.”
“I don’t recall ever a presidential candidate mentioning the Chair of the SEC by name. I also don’t remember a sitting President threatening preemptively to veto Congressional legislation about the SEC.”
Chris Brummer
In a commentary to crypto.news, Norman Wooding, the CEO and Co-Founder of Switzerland-based and regulated crypto financial service provider, SCRYPT, said the potential approval would serve as a “catalyst for other crypto-related products and innovations,” adding that the approval “would likely attract a larger pool of institutional investors, driving significant capital inflows into Ethereum and potentially boosting the entire altcoin market.”
The speculation surrounding the spot Ethereum ETF approval gained traction despite the SEC’s previous stance against greenlighting any new crypto-related spot ETFs. This development intensified the competition between the Biden administration and former president Donald Trump, particularly in the context of their contrasting approaches to crypto regulation.
As the 2024 elections approach, the clash between Trump’s crypto-friendly stance and Biden’s hesitancy becomes a focal point in a heated political battle. Despite indications from the Biden administration that it remains steadfast in adhering to the SEC’s stance on crypto regulation, the pressure from crypto voters seems to be intensifying as the SEC gears up to potentially approve spot Ethereum ETFs in the coming weeks.