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Ripple Chief Legal Officer Stuart Alderoty has called for stronger accountability in new cryptocurrency offerings after research found that half of recent buyers reported financial losses.
The National Cryptocurrency Association (NCA), which Alderoty leads, raised concerns about investor protection as the U.S. Securities and Exchange Commission (SEC) considers new rules for crypto fundraising.
On October 23, Alderoty wrote on X that too many Americans were losing money through new crypto offerings. He argued that investors should understand what projects promise to deliver and who will take responsibility if those commitments remain unfulfilled.
"Investors deserve to know what's promised before they buy and who's accountable," Alderoty stated.
His comments followed separate October 20 submissions from Ripple and the NCA supporting the SEC's proposed Regulation Crypto Assets. Both organizations called for clearer rules governing token sales and investor disclosures.
A Harris Poll survey commissioned by the NCA found that 50% of recent crypto offering participants reported losing money during the preceding 12 months. Respondents cited security breaches, abandoned projects and fraud among the causes.
Researchers surveyed 1,004 U.S. cryptocurrency holders between October 5 and October 9, including 401 people who participated in new token offerings. The findings relied on self-reported experiences rather than independently verified financial records.
The NCA submitted the research alongside its recommendations to the SEC. Only 48% of surveyed holders expressed strong confidence that available information helped them make informed investment decisions.
Meanwhile, 80% supported standardized information requirements for new offerings. Separate NCA research estimates that more than 67 million Americans hold cryptocurrencies.
The SEC proposed Regulation Crypto Assets on August 18, introducing two possible exemptions from traditional securities registration requirements.
One exemption would allow qualifying projects to raise to USD 5 million over four years. Another would permit fundraising of up to USD 75 million within 12 months, subject to additional reporting requirements.
Under the proposal, issuers would need to explain their projects, intended use of funds and investment risks. Larger offerings would require financial statements and ongoing disclosures.
The framework would retain federal protections against fraud and market manipulation. However, the SEC has not adopted the rules, and the proposed exemptions are not yet available under Regulation Crypto Assets.
The NCA has asked regulators to require clear disclosures where investors purchase tokens. Its recommendations cover security risks, trading options and updates when projects experience major changes.
The association wants issuers to provide a U.S. address for receiving legal documents. It proposed a public filing-status indicator that investors could use to check whether companies meet reporting requirements.
Ripple's October 20 submission supported the broader SEC framework but requested changes affecting secondary-market trading. The company proposed protections for regulated brokers when issuers fail to maintain current filings.
Ripple requested a good-faith safeguard for eligible transactions and clearer treatment of brokers executing customer orders. The SEC received these proposals during its public consultation, which closed on October 20.
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