In a recent development, Ladan Stewart, a key member of the US Securities and Exchange Commission (SEC), has resigned from her position to join a pro-crypto law firm. This move has raised eyebrows in the legal and cryptocurrency communities, as Stewart was a Regional Trial Counsel in the SEC’s Crypto Assets and Cyber Unit.
Stewart has joined White & Case as a partner, where she will be responsible for establishing a crypto and cyber defense practice. In a statement to Bloomberg, she expressed her belief that cryptocurrency is here to stay, pointing to the increasing number of Bitcoin exchange-traded funds as evidence of its growing popularity.
Stewart’s Background
Before joining White & Case, Stewart had been with the SEC since 2015 and played a key role in high-profile cases such as the SEC’s lawsuit against Ripple. She was also leading the SEC’s ongoing legal battle against Coinbase, although recent filings suggest that she will no longer be involved in that case.
White & Case’s Reputation
White & Case has a history of representing well-known clients in the legal and financial sectors, including Microsoft, GoldenTree Asset Management, and Abbvie Inc. The firm was also instrumental in advising Fidelity on the creation of its spot Bitcoin ETF, which received approval earlier this year.
Industry experts have praised Stewart’s move to White & Case, with Joel Cohen highlighting her experience as a significant asset in light of the increasing regulatory scrutiny faced by the crypto industry. However, some question whether this development indicates a weakening of the SEC’s ability to regulate through enforcement actions.
Ongoing Legal Challenges
The news of Stewart’s departure from the SEC comes at a time when the regulator is facing challenges on multiple fronts. A recent lawsuit filed in Texas by Lejilex and the Crypto Freedom Alliance of Texas accuses the SEC of overstepping its authority in regulating digital assets. The plaintiffs argue that the SEC’s classification of digital tokens as securities is misguided and call for a more nuanced approach to regulation.
Overall, Stewart’s move to White & Case reflects the evolving nature of the legal landscape surrounding cryptocurrency. As digital assets continue to gain mainstream acceptance, it is clear that legal experts like Stewart will play a crucial role in shaping the future of the industry. It remains to be seen how the SEC will respond to these developments and whether they will adopt a more flexible approach to regulating cryptocurrencies in the future.
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