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Alderoty Calls for Accountability in Crypto Offerings
Americans losing money in new crypto offerings need clearer information about project commitments and who is accountable for delivering them, Ripple Chief Legal Officer Stuart Alderoty argued Oct. 23. The executive at the blockchain payments company addressed those concerns in his call for crypto issuer accountability on X, supporting the Securities and Exchange Commission’s (SEC) proposed Regulation Crypto Assets.
Alderoty, who also serves as president of the National Cryptocurrency Association (NCA), wrote:
“Too many everyday Americans are losing money to new offerings. That has to change. Investors deserve to know what’s promised before they buy and who’s accountable.”
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His comments follow Ripple’s support for formal crypto fundraising rules in an Oct. 20 submission that also requested trading safeguards.
Survey Finds Losses Among Half of Recent Offering Buyers
A Harris Poll survey commissioned by NCA found that half of recent crypto offering participants reported losing money during the preceding 12 months through hacks, abandoned projects, or fraud. The NCA’s findings on crypto offering risks accompanied its Oct. 20 comments to the SEC.
Researchers surveyed 1,004 U.S. crypto holders Oct. 5-9, including 401 recent new-offering participants. Responses were self-reported, and Harris oversampled new-offering participants and accredited holders, weighting figures for all holders. Only 48% of holders were very or extremely confident that available information supported informed decisions, while 80% agreed standardized offering information would help.
Separate NCA research produced estimates of 67 million American crypto holders, illustrating the broader population whose experiences the association seeks to represent. Its offering recommendations focus on disclosures that buyers can find and understand before purchasing.
SEC Proposal Would Pair Fundraising Exemptions With Disclosures
Eligible crypto fundraising transactions could receive registration exemptions under the SEC’s proposed Regulation Crypto Assets, issued Aug. 18. One pathway would permit up to $5 million over four years, while another would allow up to $75 million annually. Issuers would provide disclosures and remain subject to antifraud and antimanipulation provisions. The framework remains a proposal.
Separately, the SEC and five partner organizations issued a joint warning Oct. 5 about scammers posing as friends, financial professionals, or regulators. The warning about scams targeting investor trust described schemes that display fictitious profits or permit small withdrawals before blocking access.
Deceptive promotions involving fake exchanges, impersonation, and promises to multiply deposits are also common bitcoin and crypto fraud tactics. NCA’s offering-specific recommendations seek disclosures where buyers encounter sales and prompt updates after significant security incidents.
To strengthen accountability, the association also recommends a U.S. address where legal papers can be served on issuers and a public indicator showing whether required filings are current.
Source: cryptonews.net