- Ladan Stewart, key SEC lawyer in crypto enforcement, leaves for White & Case, raising questions about future regulatory directions.
- Ongoing SEC lawsuits against Coinbase and Ripple could set significant precedents for cryptocurrency regulation.
In a significant development within the U.S. Securities and Exchange Commission (SEC), Ladan Stewart, a distinguished lawyer who has been at the forefront of the SEC’s cryptocurrency enforcement efforts, has announced her departure.
Stewart, who has spent eight years with the SEC, played a pivotal role in the regulatory body’s legal battles against prominent crypto entities such as Coinbase Global Inc. and Ripple Labs. Her move to join the law firm White & Case marks a critical juncture for the SEC, particularly as it navigates complex legal landscapes involving key players in the cryptocurrency market.
Stewart’s tenure at the SEC’s enforcement division has been marked by high-profile actions against major cryptocurrency exchanges and token issuers.
As the head of the SEC’s crypto and cyber litigation unit, she spearheaded efforts to define and enforce regulatory standards within the rapidly evolving crypto space. Her leadership in litigating against Coinbase and Ripple underscored the SEC’s commitment to ensuring compliance within the industry.
Ladan Stewart, who led the SEC’s crypto unit and actions against coinbase and ripple, is leaving regulator to join White & Case in the white collar division to lead crypto group. This is firm that advised Fidelity in bitcoin ETF. Via @JustinFWise https://t.co/Lo5jdPPaTV pic.twitter.com/HdNfLuQkVM
— Eric Balchunas (@EricBalchunas) February 21, 2024
Implications for Crypto Regulation
The exit of such a key figure raises questions about the direction of SEC’s cryptocurrency regulation. Eric Balchuas, an ETF analyst at Bloomberg, speculated that Stewart’s departure could signal potential shifts in the regulatory framework, especially regarding Bitcoin ETFs under the leadership of SEC Chairman Gary Gensler.
Stewart’s emphasis on stringent regulatory actions, as demonstrated in the lawsuit against Coinbase for operating without proper registrations, highlights the SEC’s aggressive stance on enforcing securities laws within the crypto sector. For a deeper dive into these advancements, a detailed explanation is available in this Youtube video.
Ongoing Legal Challenges
The lawsuit against Coinbase, initiated by the SEC last June, has recently advanced to a critical phase. Allegations that the exchange functioned as an unregistered securities exchange, broker, and clearing agency have led to intense legal scrutiny.
A recent court session hinted at a possible denial of Coinbase’s motion, potentially moving the case into the discovery phase, a development that could have significant implications for the exchange and the broader crypto industry.
Similarly, the SEC’s legal battle with Ripple over the classification of its XRP token continues to unfold. Despite a favorable ruling for Ripple last year, where a federal judge in New York determined that XRP is not a security when sold to the general public, the SEC has chosen to appeal the decision.
Ripple’s request for an extension to produce documents related to the sale of XRP to institutional buyers indicates that this legal saga is far from over.
After briefly building strength, the price of XRP returned to the red zone, dropping 2.37% in the last 24 hours to around $0.5420.