Ripple CLO Stuart Alderoty Rejects

Executive Summary

Stuart Alderoty, Chief Legal Officer at Ripple and President of the National Cryptocurrency Association (NCA), has publicly challenged the narrative that cryptocurrency is predominantly a tool for illicit activities. Alderoty asserts that public blockchains inherently offer transparency and traceability, which he argues deters rather than enables financial crime. This stance is part of a broader advocacy effort, supported by a $50 million grant from Ripple to the NCA, aimed at promoting crypto literacy and fostering a clear regulatory framework in the United States.

The Event in Detail

Alderoty characterizes the claim that crypto is solely a tool for crime and corruption as "lazy and inaccurate." He emphasizes the transparent nature of public blockchains, which record every transaction, making them traceable. This transparency, according to Alderoty and echoed by Coinbase Chief Legal Officer Paul Grewal, serves as a formidable deterrent against financial crime by allowing meticulous monitoring of transactions. Grewal noted that this traceability empowers authorities to detect suspicious activities, thereby bolstering financial security.

Evidence of mainstream adoption supports Alderoty's position. A survey conducted by the NCA in partnership with Harris Poll found that approximately one in five U.S. adults owns cryptocurrency, totaling 55 million individuals. Americans transacted over $1 trillion in digital assets in 2024 for various uses including payments and savings. The NCA's "2025 State of the Crypto Holders Report" indicated that 76% of these users report a positive impact on their lives, and 39% utilize crypto for purchasing goods and services. A significant 76% of crypto holders trust crypto as much as or more than traditional banking institutions.

Alderoty, through his role at the NCA, actively campaigns for clear U.S. crypto regulations. He has previously urged policymakers to "finish the job on crypto clarity," criticizing the existing "Regulation by Enforcement" approach. He states that "in the absence of regulation, we actually breed the opportunity for harm to consumers" and that "without clear rules, it's if you're going to try to enforce in the absence of rules, you're going to create chaos." The NCA, a 501(c)(4) organization, aims to educate the public and advocate for policies that promote safe adoption.

Market Implications

The proactive advocacy by figures such as Alderoty and organizations like the NCA could significantly influence the public and regulatory discourse surrounding cryptocurrency. Success in reframing the narrative, coupled with clear regulatory frameworks, has the potential to reduce regulatory uncertainty, foster broader mainstream adoption, and enhance the industry's legitimacy. This could lead to a more stable environment for Web3 ecosystems and encourage corporate engagement with digital assets.

The resolution of the XRP SEC case has already begun to establish a legal precedent, differentiating between programmatic sales (treated as commodity-like) and institutional sales (treated as securities). This framework has contributed to the SEC dropping investigations into major exchanges and platforms, signaling a potential shift towards a more collaborative regulatory approach. The anticipated "Regulatory Revolution" includes efforts to modernize digital asset regulations and growing political support for pro-crypto leadership within the SEC and the White House.

Broader Context

Alderoty contends that the absence of clear, consistent rules does not eliminate crypto activity but rather "pushes activity to jurisdictions moving faster" than the U.S. He argues that regulatory clarity is crucial for both consumer protection and enabling responsible firms to innovate domestically. Polling data indicates that while 64% of Americans support government regulation of crypto, 67% caution against regulations that could stifle innovation. Furthermore, 73% desire the U.S. to become a global leader in the field.

The strategic funding of the NCA by Ripple and the political engagement by its executives underscore the industry's commitment to shaping policy. Ripple's contribution of $45 million to the Fairshake political action committee and Alderoty's personal donations demonstrate efforts to influence U.S. voters and policymakers in favor of clearer, more favorable cryptocurrency regulation. This coordinated advocacy aims to cultivate an environment where digital assets can thrive under a predictable and supportive regulatory regime.