Stuart Alderoty, Ripple's Chief Legal Officer, has strongly denounced a recent statement by Gurbir Grewal, the Securities and Exchange Commission's (SEC) Director of Enforcement, regarding compliance efforts in the crypto sector.

During an SEC event, Grewal suggested that the crypto industry was using various tactics to avoid regulation, like relocating or registering in different places. He defended the SEC's regulatory stance, denying claims of exceeding its regulatory scope.

Alderoty criticized Grewal's remarks, pointing out biases and omissions in the Director's statements. He highlighted instances where the SEC's enforcement actions were questioned for potential abuses and criticized the inconsistent application of the Howey test, causing confusion in the industry.

The Ripple executive emphasized the need for the SEC to address these issues, restore credibility, and acknowledge the damage caused by its regulatory approach. Alderoty called for transparency and accountability to repair the strained relationship between the SEC and the crypto sector.