Ripple Chief Legal Officer Stuart Alderoty is pressing for clearer project commitments and issuer accountability in new crypto offerings, arguing that buyers need better information before they commit funds. His Oct. 23 comments, posted on X, back the Securities and Exchange Commission's proposed Regulation Crypto Assets.
Alderoty, who is also 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."
The remarks follow Ripple's Oct. 20 submission supporting formal crypto fundraising rules, which also requested trading safeguards.
Survey Finds Losses Among Half of Recent Buyers
An NCA-commissioned Harris Poll found that half of recent crypto offering participants reported losing money over the preceding 12 months through hacks, abandoned projects, or fraud. The findings accompanied the association's Oct. 20 comments to the SEC.
Researchers surveyed 1,004 U.S. crypto holders between Oct. 5 and Oct. 9, including 401 recent new-offering participants. Responses were self-reported, and Harris oversampled new-offering participants and accredited holders while weighting figures for all holders.
Only 48% of holders said they were very or extremely confident that available information supported informed decisions, while 80% agreed that standardized offering information would help.
Separate NCA research produced an estimate of 67 million American crypto holders, a figure the association uses to describe the population whose experiences it seeks to represent. Its offering recommendations focus on disclosures buyers can find and understand before purchasing.
SEC Proposal Would Pair Exemptions With Disclosures
Under the SEC's proposed Regulation Crypto Assets, issued Aug. 18, eligible crypto fundraising transactions could receive registration exemptions. 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.
Scam Warning Highlights Investor Trust Risks
Separately, the SEC and five partner organizations issued a joint warning on Oct. 5 about scammers posing as friends, financial professionals, or regulators. The warning 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.
The NCA's offering-specific recommendations call for disclosures at the point where buyers encounter sales, along with 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.
