A key member of the US Securities and Change Fee’s (SEC) authorized crew, Ladan Stewart, stepped down from her function on the company to affix a pro-crypto regulation agency, Bloomberg Legislation reported on Feb. 21.
Stewart, who served as Regional Trial Counsel within the SEC’s Crypto Belongings and Cyber Unit since September 2022, has joined White & Case as a accomplice to ascertain a crypto and cyber protection observe.
In an announcement to Bloomberg, she stated:
“Crypto is right here to remain — that’s change into very clear with the launch of a slew of Bitcoin exchange-traded funds… Given the complexity and the turbulent enforcement enviornment, authorized questions surrounding crypto are going to be on the forefront for a while.”
Stewart joined the SEC in 2015 and was a part of the SEC lawyer crew within the regulator’s case in opposition to Ripple, which involved the securities standing of the related XRP token.
Stewart additionally led the SEC’s ongoing lawsuit in opposition to Coinbase, and up to date authorized filings point out that she is going to withdraw from that case.
In response to the report, Stewart’s new regulation agency has represented numerous high-profile shoppers, together with Microsoft, GoldenTree Asset Administration, and the pharmaceutical firm Abbvie Inc.
Bloomberg ETF analyst Eric Balchunas noted elsewhere that White & Case suggested Constancy because it created its spot Bitcoin ETF (FBTC), which gained approval in January. The regulation agency was additionally concerned in Celsius’ now-complete chapter case.
White & Case member Joel Cohen praised Stewart and stated her expertise is “a big asset given the heightened regulatory scrutiny of the crypto business lately.”
SEC dealing with a brand new lawsuit
It’s unclear whether or not this growth helps the notion that the SEC’s means to control by enforcement is weakening. The information comes months after a November 2023 report suggesting that the SEC struggles to rent crypto consultants, partly due to its prohibition on holding crypto.
In the meantime, the regulator faces a recent lawsuit filed in Texas by crypto firm Lejilex and the Crypto Freedom Alliance of Texas (CFAT). The lawsuit accuses the SEC of exceeding its authority in regulating digital belongings, Reuters reported on Feb. 21.
Lejilex goals to launch a crypto alternate and disputes the SEC’s classification of digital tokens as securities, a stance that conflicts with the SEC’s actions in opposition to distinguished exchanges like Coinbase and Binance.
The plaintiffs problem the SEC’s interpretation of digital belongings as “funding contracts” and advocate for the applying of the “main questions” doctrine, which restricts important regulatory actions with out express Congressional authorization.
