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Ripple’s CLO Challenges SEC Chair Gary Gensler’s Views on Cryptocurrency Tokens

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Ripple’s CLO Challenges SEC Chair Gary Gensler’s Views on Cryptocurrency Tokens

Alderoty’s Critique of Gensler’s Remarks

Stuart Alderoty, the Chief Legal Officer (CLO) of cryptocurrency and payment service giant Ripple (XRP), has expressed strong objections to recent statements made by the Chair of the U.S. Securities and Exchange Commission (SEC), Gary Gensler. Alderoty voiced his concerns following Gensler’s recent participation in a congressional hearing.

During his address to the U.S. Senate Appropriations Committee, Gensler emphasized the possibility that cryptocurrency tokens might be classified as securities. Reacting sharply to these comments, Alderoty observed:

“In the recent Senate hearing, Mr. Gensler inaccurately represented the law, specifically the Howey test, by implying that tokens inherently qualify as investment contracts. Is it justifiable for the SEC to persistently circulate these misconceptions?”

Ripple’s Triumph in the Courts

Ripple experienced a significant legal victory on July 13, when it was ruled that the XRP token’s programmatic sales, which are sales executed on exchanges, do not qualify as securities. Following this ruling, Alderoty highlighted that, legally, XRP was not a security.

Ripple’s CEO, Brad Garlinghouse, also shed light on the significance of this judgment. He emphasized that the decision challenges the SEC’s position, which tends to categorize most tokens as securities. Moreover, Garlinghouse expressed optimism that this ruling might pave the way for favorable precedents for other digital tokens within the U.S.

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Gensler’s Extended Observations

During the U.S. Senate Appropriations Committee’s examination of the SEC’s proposed 2024 budget, Gensler alluded to the fact that most cryptocurrency projects had a team of entrepreneurs behind them, suggesting the potential for these tokens to come under the Securities Act’s purview.

Additionally, in a conversation with Senator Richard Durbin regarding the measures to safeguard American consumers from cryptocurrency risks, Gensler pointed out that the SEC holds considerable power. He underscored that only a handful of cryptocurrencies fall outside the SEC’s domain.

However, Gensler clarified that Bitcoin, unlike other assets, does not exhibit characteristics of an investment contract as per securities laws. Thus, its regulation would be the responsibility of the Commodity Futures Trading Commission (CFTC), a distinct regulatory body.

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Dogecoin, Shiba Inu Advance But Fartcoin, Pudgy Penguins Lead Memecoin Rally With Double-Digit Gains – Emeren Group (NYSE:SOL)

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Dogecoin, Shiba Inu Advance But Fartcoin, Pudgy Penguins Lead Memecoin Rally With Double-Digit Gains – Emeren Group (NYSE:SOL)

Memecoins roared back into momentum on Wednesday amid a broader rally supported by encouraging inflation data and Donald Trump’s pro-cryptocurrency moves.

What happened: The unconventional Fartcoin surged over 27% in the last 24 hours to emerge as the biggest meme coin gainer. 

The Solana SOL/USD-based token amassed a market capitalization of $1.24 billion at the time of writing, with trading volumes jumping 26% in the last 24 hours.

Fartcoin was followed by dogwifhat, another popular community-driven Solana meme coin, based on a meme featuring a dog wearing a hat.

The billion-dollar-valued cryptocurrency pumped 11%, while its trading volume jumped 75%.

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PENGU, the official coin of the popular non-fungible token collection Pudgy Penguins, gained 9.76% to a market capitalization of $2.16 billion.

Cryptocurrency Gains +/- Price (Recorded at 10:45 p.m. ET)
Fartcoin (FARTCOIN) +27.22% $1.25
dogwifhat WIF/USD +11.55% $1.71
Pudgy Penguins (PENGU) +9.76% $0.03448

See Also: Italy’s Largest Bank Leaps Into Bitcoin Trading With $1 Million ‘Test’ Investment But CEO Says He Doesn’t Invest In BTC Personally

Meme coin heavyweights like Dogecoin DOGE/USD and Shiba Inu SHIB/USD also gained momentum, rising 3.63% and 2.58%, respectively.

Ethereum ETH/USD-based frog-themed coin Pepe PEPE/USD jumped 6%, while cat-themed Popcat, one of 2024’s biggest gainers, rallied 7.88% in the last 24 hours.

The total meme coin market capitalization rose 4.83% to $106.94 billion, while the overall volume surged 27.81% to $10.74 billion.

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The upsurge followed slower-than-expected growth in core inflation, seen as a net positive for risk-on assets. Additionally, a report raised hopes for clear cryptocurrency regulations under new SEC leadership in the Trump administration.

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Streamlined Cryptocurrency-Focused Apps

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Streamlined Cryptocurrency-Focused Apps
Blaqclouds, Inc. has introduced ShopwithCrypto.io, a Progressive Web App designed to enhance cryptocurrency usability in daily transactions. This app offers a streamlined, multi-device experience that supports over 250 cryptocurrencies across major blockchain networks like ETH, BNB, and MATIC.

Key features of ShopwithCrypto.io include offline functionality, QR code integration, and the ability to purchase gift cards from global merchants, all while ensuring security and transparency through the ZEUS Blockchain. The Progressive Web App’s lightweight design and compatibility with both Android and iOS platforms make it accessible without the need for app store downloads. By combining ease of use with robust security measures, it aims to bridge the gap between digital assets and real-world spending. Its integration with popular wallets like MetaMask allows users to manage their transactions seamlessly while maintaining control of private keys.

Image Credit: Blaqclouds, Inc.

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Delta police targeting cryptocurrency scams

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Delta police targeting cryptocurrency scams

DPD and blockchain analytics company Chainalysis co-hosted other law enforcement agencies and cryptocurrency exchanges for ‘Operation DeCloak’

A cryptocurrency fraud workshop co-hosted by the Delta Police Department last fall identified over 1,100 victims worldwide, including a ‘significant number’ in Canada.

On Sept. 16 and 17, 2024, the DPD and blockchain analytics company Chainalysis hosted “Operation DeCloak,” bringing together representatives from law enforcement agencies including the RCMP, Victoria Police Department, Vancouver Police Department, the BC Securities Commission, the BC Prosecution Service and the BC Financial Services Authority, as well as key stakeholders from cryptocurrency exchanges such as Shakepay and others.

The initiative was a localized “sprint” of Chainalysis’ “Operation Spincaster,” a series of public-private collaborations designed to disrupt and prevent cryptocurrency scams. Spincaster itself spun out from “Operation Disruption,” a collaboration between Chainalysis and the Calgary Police Service in March 2024.

“Leveraging the transparency of the blockchain, Chainalysis proactively identified thousands of compromised wallets. This actionable intelligence formed the basis of a series of operational sprints across six countries (U.S., U.K., Canada, Spain, Netherlands and Australia) with over 100 attendees, including 12 public sector agencies and 17 crypto exchanges,” the company said in a press release.

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“Over 7,000 leads were disseminated during these sprints, relating to approximately US$162 million of losses. These leads were used to close accounts, seize funds and build intelligence to prevent future scams.”

During last fall’s Operation DeCloak, Chainalysis led training sessions in investigating leads, tracing stolen funds and identifying compromised wallets using the company’s proprietary “Crypto Investigations Solution.”

According to a DPD press release, 240 crypto addresses were closely examined, revealing an estimated collective loss of C$35 million.

SEE ALSO: Court rejects environmental challenge to massive Delta port expansion

The event also promoted proactive policing and disruption strategies aimed at combating fraud, with particular emphasis on a growing tactic known as “approval phishing” used by romance and investment scammers targeting cryptocurrency transactions. 

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The method involves scammers gaining their victim’s trust by promoting false investment opportunities with the promise of high returns, thereby convincing victims to unknowingly approve malicious blockchain transactions.

The initial transaction gives the scammer access to tokens in the victim’s digital wallet without the victim’s knowledge, resulting in unauthorized withdrawals.

Police say scammers typically connect with their victims through social media, or via apps or pop-up ads.

During Operation DeCloak, police say immediate steps were taken to notify identified victims of these scams.

“With the co-operation of the exchange companies, affected individuals were promptly contacted with the goal of preventing further harm,” the DPD said in its press release.

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Since the workshop, the department has successfully deployed the techniques learned through Operation DeCloak. 

“The technique was applied to a previous investigation which identified stolen cryptocurrency funds in a blacklisted address containing US$1.2 million. This address was in the process of being seized by an overseas police agency,” the department said.

Using the DeCloak techniques, the DPD’s Cybercrime Unit has identified an additional 70 transactions worth US$800,000 sent from Canadian exchanges. Investigators are identifying those victims and seizing the funds from the blacklisted address so they can be returned.

“This collaboration with Chainalysis and cryptocurrency exchanges is a testament to the DPD’s focus on innovation and commitment to community safety and well-being.”

SEE ALSO: Conservative candidate files court petition over Surrey ‘voting irregularities’

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SEE ALSO: Good Samaritan saves 3 people in fiery single-car crash in Surrey

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