SEC Attorney Moves To Law Firm Defending Crypto Companies

Jimmy Aki
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Ladan Stewart, a former lawyer with the Securities and Exchange Commission (SEC), has become a partner at the White & Case LLP law firm. Stewart is recognized for handling prominent cases involving Ripple and Coinbase. Her decision becomes intriguing as this newly joined firm frequently defends crypto companies.

Former SEC Attorney Joins White & Case LLP

In a statement released on February 21, White & Case’s law firm announced that Stewart had become a partner at their New York office.

The former SEC attorney commenced her role on Tuesday and will counsel clients navigating SEC examinations and other enforcement issues. She will also conduct white-collar investigations and handle civil litigation and trials.

Before joining White & Case, Stewart spent over eight years in the SEC’s Division of Enforcement. In her recent role as Assistant Director and Regional Trial Counsel, she led the SEC’s specialized crypto and cyber litigation unit.

Stewart also established the agency’s first-ever specialized litigation unit and supervised its crypto litigation initiatives.

This position placed the attorney at the forefront of the SEC’s heightened focus on enforcing crypto regulations, which included actions against major crypto exchanges like Coinbase, Bittrex, FTX, and Ripple Labs.

Joel M. Cohen, the Global Head of White & Case’s Global White Collar Practice, regards Stewart as a valuable asset for their firm. He emphasized her substantial expertise of over 20 years of experience as a seasoned SEC enforcement attorney and civil litigator.

The prospect of Stewart potentially opposing former SEC colleagues in crypto enforcement cases raised concerns among lawmakers, especially about former government officials transitioning into the digital asset sector.

On the other hand, Stewart acknowledged the potential for conflicts of interest but expressed confidence in her ability to manage them. She cited her deep expertise and understanding of how the SEC approaches such matters.

As for White & Case, the legal firm has represented numerous cryptocurrency companies in notable legal matters, including engagements with the SEC.

A partner from White & Case also acted on behalf of provisional liquidators overseeing FTX’s operations in the Bahamas after the exchange’s collapse in November 2022.

Concerns About Former Officials Joining The Digital Asset Industry

The transition of key personnel from regulatory positions to influential roles within the rising digital asset space has raised questions for lawmakers.

This includes potential conflicts of interest, regulatory capture, and the broader implications for investor protection and market integrity.

Consequently, Senator Elizabeth Warren, a prominent critic of digital assets within the United States Congress, has disapproved.

She urged crypto advocacy groups to address concerns regarding the industry’s employment of former government officials and lawmakers.

In regards to this, on December 18, 2023, Senate Warren penned letters to the leadership of advocacy groups Coin Center and the Blockchain Association.

She referenced a Politico report indicating that certain segments of the crypto industry had enlisted a “small army of former defense, national security, and law enforcement officials” to resist regulation of digital assets.

Senator Warren reiterated that crypto was behind the financing of some organizations officially declared as terrorist organizations by the U.S., such as Hamas.

Therefore, she believes government officials’ transitions to the crypto industry suggest potential lobbying roles. According to Senator Warren, this raises concerns about conflicts of interest and regulatory influence.

Kristin Smith, CEO of the Blockchain Association, responded to the letter by suggesting that Senator Warren should focus her efforts on addressing wrongdoing, rather than criticizing those who are collaborating with U.S. law enforcement to apprehend bad actors.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.