- Gensler misstated the Supreme Court test to determine what is and isn’t considered security.
- Stuart Alderoty slammed Gensler for misinterpreting the U.S. Supreme Court test.
- Gensler said the Supreme Court has already put to rest the argument on which assets should qualify as securities.
The U.S. Securities and Exchange Commission (SEC) chairman, Gary Gensler, has been making the rounds on the internet for his controversial statements. Earlier today, Gensler misstated the Supreme Court test to determine what is and isn’t considered security. The statement refers to the ongoing battle between Ripple and the SEC.
The general counsel at Ripple, Stuart Alderoty, slammed Gensler for misinterpreting the U.S. Supreme Court test to determine what should be a security.
In today’s Senate Banking Committee hearings, Chair Gensler misstated the Supreme Court test to determine what is and isn’t a security. Was it intentional or does he really not know the law? Which is worse?— Stuart Alderoty (@s_alderoty) September 16, 2022
Alderoty took to Twitter to question the basis of his statement. He further added that if Gensler made the remark deliberately or unintentionally, The answer to the tweet was left for his followers to debate, one of whom was the renowned defense lawyer James K. Filan. The lawyer retweeted Stuart, saying “there are no accidents.”
Furthermore, several crypto enthusiasts raised eyebrows at the credibility of Gensler’s statement. After digging in, it was revealed that Gensler does not hold a degree in law. In fact, he was a veteran banker at the famous investment banking firm “Goldman Sachs.”
Gary was pressed on his view that while Bitcoin behaved more like a commodity, other altcoins functioned like conventional stocks. The chairman in his defense dissed the accusations by stating that the Supreme Court has already put to rest the argument on what assets should qualify as a security.
Speaking of the elements that qualify an asset as a security, Gensler added:
There are many factors; it’s not one spectrum of decentralization versus decentralization.
Notably, Gensler has made several controversial comments against renowned cryptocurrencies like Ethereum and Ripple Labs. He also made the remark that cryptocurrencies and intermediaries that allow holders to “stake” their coins may be defined as securities under the Howey Test.
His comments have been adding fuel to fire in the ongoing chain of events such as the Merge and the embroiled war between XRP and SEC. The regulator may now be shifting its focus to ETH.