- The US Securities and Exchange Commission (SEC) is reported to have lost a top lawyer to a renowned law firm White & Case.
- Ladan Stewart had been working in SEC’s crypto and cyber litigation unit since 2022 and was involved in the Coinbase and the Ripple lawsuits.
One of the top lawyers in the US Securities and Exchange Commission’s (SEC) crypto division, Ladan Stewart, has reportedly resigned from the Agency to join White & Case, a renowned law firm in the US. The main reason for her decision is unknown, however, it is speculated that Stewart wanted to move away from the “hostile engagement” with the emerging crypto industry. Her role in the SEC’s crypto and cyber litigation unit began in 2022, having participated in multiple cases including the lawsuit against Coinbase in June 2023.
In that case, Coinbase was accused of violating U.S. securities laws since 2019. The exchange was also accused of violating the “disclosure regime established” designed for the securities market. In a nutshell, authorities charged them for merging functions (broker, clearing house, exchange.)
By collapsing these functions into a single platform failing to register with the SEC as to any of the three functions, and not having qualified for any applicable exemptions from registration, Coinbase has for years defied the regulatory structures and evaded the disclosure requirements that Congress and the SEC have constructed for the protection of the national securities markets and investors.
In addition to this, Stewart was part of the team that triggered the almost three-year legal battle against blockchain company Ripple Labs on the security status of XRP. SEC partially lost the case to Ripple, however, the Commission is reported to have appealed the ruling by the New York federal judge. Ripple has also filed for an extension to come up with documents relating to the sales of XRP to institutional investors, hedge funds, and entities. According to reports, legal briefs are expected to be submitted in March and April this year.
Stewart Believes “crypto is here to stay”
Bloomberg’s Law report discloses that Stewart aims to develop a robust practice specializing in crypto and cyber defense.
She is quoted to have admitted that crypto would certainly continue to exist, but would have to deal with the turbulent enforcement landscape. The recently approved spot Bitcoin Exchange-Traded Funds speak volumes about the thriving ecosystem.
Crypto is here to stay—that’s become very clear with the launch of a slew of Bitcoin exchange-traded funds. Given the complexity and the turbulent enforcement arena, legal questions surrounding crypto are going to be at the forefront for some time.
White & Case has more than 40 offices across the globe with over 2,600 lawyers. It is recognized as one of the largest law firms in the US, with clients cutting across different fields including Microsoft, Abbvie Inc., and GoldenTree Asset Management.
The resignation of Stewart is not expected to have much impact on the ongoing cases as the SEC reportedly has equally competent lawyers. However, investors seem to have reacted to the news as XRP has risen by 1.06% in the last 24 hours
As of press time, the asset was trading at $0.550046. Unfortunately, those who acquired the asset a week ago are yet to recover from their losses as XRP remains 1.45% down within the period.
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