Ripple's Chief Legal Officer, Stuart Alderoty, has criticized SEC Chairman Gary Gensler's statement on cryptocurrencies, which portrayed them as "crypto asset securities" deserving protection under securities laws . Alderoty accused Gensler of intending to deceive Congress, citing a July decision in the Ripple case that differentiated between XRP sales and investment contracts.

Gensler's testimony emphasized the need for crypto asset securities markets to comply with securities laws, ensuring investor and issuer protection. However, he refrained from commenting on ongoing litigation and specific tokens.

Alderoty has been a vocal critic of Gensler's views, previously accusing him of misunderstanding cryptocurrencies and misstating the Supreme Court's criteria for determining unregistered securities ¹.

In another development, Representative Tom Emmer criticized Gensler for categorizing Ethereum as a security and accused him of exceeding his authority, potentially harming investors and threatening U.S. leadership. Amidst the criticism, Gensler indicated that approving spot Ethereum ETF registrations would take time.

The controversy highlights the ongoing debate over the regulatory approach to cryptocurrencies, with Alderoty's remarks adding to the industry's concerns about the SEC's stance.