ECB Has Proposed Europe’s Regional Equivalent of the SEC
Ripple's Chief Legal Officer, Stuart Alderoty, recently commented on the US Securities and Exchange Commission (SEC), suggesting a potential decline in its significance.
Meanwhile, discussions in Europe are underway regarding the creation of a regulatory body similar to the SEC.
The SEC faced backlash after taking legal action against Ripple Labs in 2020, prompting discussions within the industry about its waning global influence.
During the ongoing legal battle between Ripple Labs and the SEC, Alderoty expressed concerns about the SEC’s performance, raising issues such as courtroom effectiveness, judicial critique over questionable practices, government oversight reprimands, undisclosed meetings, and a perceived diminishing international impact.
Amid recent remarks made by SEC chair Gary Gensler, Stuart Alderoty took the opportunity to point out apparent discrepancies. He highlighted that while Ripple was sued, it was never accused of ‘dishonesty.’ Alderoty criticized the foundation of the case against Ripple, citing ethical concerns around its inception and Gensler’s evident predispositions toward cryptocurrencies.
In a partial victory for Ripple in July, a judge ruled that the company hadn’t violated federal securities laws by selling XRP on cryptocurrency exchanges. However, the legal dispute remains ongoing, pending a decision on the legitimacy of Ripple’s institutional sales of XRP tokens.
Meanwhile, discussions in Europe revolve around the establishment of an SEC-equivalent body. European Central Bank President Christine Lagarde proposed empowering the European Union’s securities watchdog, the European Securities and Markets Authority (ESMA).
Lagarde emphasized the necessity of consolidating oversight under a unified regulatory framework for the European Union’s securities market, which currently operates predominantly at the national level. Introducing a European agency with comprehensive authority, including direct supervision, could address the existing fragmented oversight landscape.