A key member of the US Securities and Change Fee’s (SEC) authorized group, Ladan Stewart, stepped down from her function on the company to hitch a pro-crypto legislation 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 determine a crypto and cyber protection apply.
In a press release to Bloomberg, she stated:
“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 group within the regulator’s case towards Ripple, which involved the securities standing of the related XRP token.
Stewart additionally led the SEC’s ongoing lawsuit towards 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 legislation agency has represented varied high-profile purchasers, 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 legislation agency was additionally concerned in Celsius’ now-complete chapter case.
White & Case member Joel Cohen praised Stewart and stated her expertise is “a major asset given the heightened regulatory scrutiny of the crypto business in recent times.”
SEC dealing with a brand new lawsuit
It’s unclear whether or not this improvement helps the notion that the SEC’s means to manage 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 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 property, 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 towards distinguished exchanges like Coinbase and Binance.
The plaintiffs problem the SEC’s interpretation of digital property as “funding contracts” and advocate for the appliance of the “main questions” doctrine, which restricts vital regulatory actions with out specific Congressional authorization.
