Ripple CLO calls Gary Gensler 'a struggling liability' as political winds shift

Ripple's Chief Legal Officer Stuart Alderoty described U.S. Securities and Exchange Commission Chair Gary Gensler as "a struggling liability" — as the hype surrounding the potential approval of spot ether exchange-traded funds grows.

In response to a discussion about the SEC becoming a hot topic of pre-election discourse, Alderoty wrote on X that "Gensler overplayed his hand."

"He thought crypto was an easy target," Alderoty said, adding, "He relished being the guy that everyone loved to hate. He thought he was above Congressional oversight. That's all gone. He's now a struggling political liability."

This opinion — which has long been mirrored by many others in the crypto industry — follows an apparent and abrupt shift in sentiment from Democrats ahead of November's elections.

Some are claiming that the SEC's sudden request that exchanges amend spot ether ETF filings signals a desire to appear more crypto-friendly as the sector plays an increasing role in the quest for votes.

"It is a completely unprecedented situation, which means it's entirely political," a source familiar with the matter told The Block — referring specifically to the agency's sudden request to file amendments.

This was highlighted by yesterday's news that former U.S. President and current Republican candidate Donald Trump's campaign is now accepting cryptocurrency .

Ripple's history with the SEC

The Ripple CLO's opinion may come as no surprise. The high-profile crypto-related project has long been under the SEC's scrutiny, with the SEC recently claiming that Ripple should pay upwards of $2 billion in fines for selling XRP -1.52% to institutional investors.

Ripple, on the other hand, believes the punishment should be closer to $10 million. However, the SEC believes a fine of this amount "would encourage other crypto asset issuers to violate Section 5 by making it a remarkably lucrative endeavor, and thus deprive investors the disclosures Congress mandates, as a mere 'cost of doing business.'"