A key member of the US Securities and Trade Fee’s (SEC) authorized staff, Ladan Stewart, stepped down from her position on the company to affix a pro-crypto legislation 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 determine a crypto and cyber protection apply.
In an announcement to Bloomberg, she mentioned:
“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.”
Stewart joined the SEC in 2015 and was a part of the SEC lawyer staff 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 legal filings point out that she is going to withdraw from that case.
In line with the report, Stewart’s new legislation agency has represented varied 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 Fidelity because it created its spot Bitcoin ETF (FBTC), which gained approval in January. The legislation agency was additionally concerned in Celsius’ now-complete bankruptcy case.
White & Case member Joel Cohen praised Stewart and mentioned her expertise is “a significant asset given the heightened regulatory scrutiny of the crypto industry in recent years.”
SEC dealing with a brand new lawsuit
It’s unclear whether or not this improvement helps the notion that the SEC’s capability to manage by enforcement is weakening. The information comes months after a November 2023 report suggesting that the SEC struggles to hire crypto experts, 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 change 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 “investment contracts” and advocate for the applying of the “major questions” doctrine, which restricts vital regulatory actions with out express Congressional authorization.
