Ladan Stewart, a lawyer who previously represented the United States Securities and Exchange Commission (SEC) in its legal action against Ripple, has joined a law firm known for defending cryptocurrency companies.
In a statement released on February 21, the law firm White & Case announced that Stewart had become a partner in their New York office. The firm highlighted her experience in handling crypto enforcement cases, including her involvement in the SEC’s lawsuit against Ripple, which was filed in December 2020. Stewart withdrew as the attorney of record in January after leaving the SEC.
Joel Cohen, the head of global white collar practice at White & Case, emphasized Stewart’s role as the head of the SEC’s specialized crypto and cyber litigation unit, stating that it was a valuable asset given the increased regulatory scrutiny of the crypto industry. Cohen also expressed confidence in Stewart’s ability to provide counsel and defense for crypto industry players facing regulatory or private actions.
White & Case has previously represented numerous crypto firms in significant cases, including those involving the SEC. For example, one of the firm’s partners represented provisional liquidators overseeing FTX’s operations in the Bahamas after the exchange’s collapse in November 2022. Attorneys from the firm have also appeared for Celsius’ official creditor committee.
Nicole Erb, a partner at White & Case, suggested that Stewart’s expertise from her time at the SEC’s Division of Enforcement would be valuable in advising clients facing scrutiny from the commission. However, concerns have been raised by lawmakers about former government officials transitioning into the digital asset industry and potentially appearing against their former colleagues in enforcement cases.
Stewart herself believes that it is important for crypto and fintech companies to seek advice from individuals who understand how regulators like the SEC approach these issues. She views the movement of government officials to the private sector as a positive development, as it allows them to share their expertise and skill set with the industry.
Stewart acknowledged the potential for conflicts of interest but expressed confidence in her ability to manage them. During her time at the SEC, she handled litigation against Ripple, former FTX CEO Sam Bankman-Fried, and Coinbase. Stewart had been a counsel at the commission’s enforcement division for approximately eight years before joining White & Case.
The SEC currently has ongoing lawsuits against Binance, Kraken, Ripple, Coinbase, and other firms operating in the digital asset space. The commission has faced criticism for its approach to regulating the crypto industry, with some accusing it of relying too heavily on enforcement actions rather than establishing clear regulatory frameworks.
In conclusion, Ladan Stewart’s move to White & Case reflects the growing importance of legal expertise in the crypto industry and the need for experienced lawyers who can navigate the evolving regulatory landscape.