A key member of the US Securities and Alternate Fee’s (SEC) authorized workforce, Ladan Stewart, stepped down from her position on the company to affix a pro-crypto regulation agency, Bloomberg Regulation reported on Feb. 21.
Stewart, who served as Regional Trial Counsel within the SEC’s Crypto Property and Cyber Unit since September 2022, has joined White & Case as a associate to ascertain a crypto and cyber protection apply.
In an announcement to Bloomberg, she mentioned:
“Crypto is right here to remain — that’s turn out to be 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 workforce 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’s going to withdraw from that case.
In keeping with the report, Stewart’s new regulation agency has represented numerous high-profile purchasers, together with Microsoft, GoldenTree Asset Administration, and the pharmaceutical firm Abbvie Inc.
Bloomberg ETF analyst Eric Balchunas famous 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 mentioned her expertise is “a major asset given the heightened regulatory scrutiny of the crypto trade in recent times.”
SEC dealing with a brand new lawsuit
It’s unclear whether or not this growth helps the notion that the SEC’s capacity to control by enforcement is weakening. The information comes months after a November 2023 report suggesting that the SEC struggles to rent crypto specialists, partly due to its prohibition on holding crypto.
In the meantime, the regulator faces a contemporary 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 outstanding exchanges like Coinbase and Binance.
The plaintiffs problem the SEC’s interpretation of digital belongings as “funding contracts” and advocate for the appliance of the “main questions” doctrine, which restricts vital regulatory actions with out specific Congressional authorization.
