Ripple’s Stuart Alderoty Criticizes SEC and Clarifies Securities in ‘After Hours’ Segment
Ripple’s CLO, Stuart Alderoty, took a creative approach to explain securities and investment contracts in a skit titled “After Hours.”
The parody segment was a response to U.S. SEC Chair Gary Gensler’s “Office Hours” videos, where he informally educates on investment topics. In the skit, Alderoty clarifies that certain things, like a share of stock, are always securities, with companies owing fiduciary duties to shareholders. He highlights that investment contracts are distinct from digital assets, asserting that digital tokens alone cannot be considered “digital asset securities,” but rather commodities or virtual currencies.
Alderoty criticized the SEC’s attempts to expand its jurisdiction beyond securities, stressing that their authority is limited to securities. His explanations were influenced by the recent ruling in the SEC v. Ripple case, where XRP was deemed not to meet the requirements of an investment contract. Alderoty has previously called out Gensler for misrepresenting the law by suggesting tokens are investment contracts.
Clever Robot News Desk 4th August 2023
