Ripple's Chief Legal Officer, Stuart Alderoty, strongly criticized comments made by Gurbir Grewal, the Director of Enforcement at the Securities and Exchange Commission (SEC), regarding the compliance efforts of the crypto industry.

During a recent SEC event, Grewal suggested that the emerging crypto industry was employing various methods to evade regulatory oversight, such as relocating or registering in different jurisdictions. He also addressed concerns about the SEC's regulatory approach, refuting claims of overreach and enforcing regulations beyond its mandate.

However, Alderoty pointed out biases in Grewal's remarks, noting that while the SEC chief praised the regulator's enforcement actions, he overlooked instances of regulatory overstep and abuses of power from the Commission.

Alderoty highlighted the SEC's inconsistent application of the Howey test, leading to confusion within the industry. He urged the SEC to address these issues to restore credibility and trust, emphasizing the need for greater transparency and accountability.

In conclusion, Alderoty urged the SEC to acknowledge and rectify the institutional damage caused by its approach to crypto regulation. He emphasized the importance of honesty and accountability in repairing the relationship between the SEC and the crypto industry.