Ripple’s Legal Battle with the SEC
Stuart Alderoty, Ripple’s chief legal officer, has criticized the Securities and Exchange Commission (SEC) Chair, Gary Gensler, following a video speech in which Gensler referred to regulators as “partners of honest business and prosecutors of dishonesty.” Alderoty took to Twitter to express his disapproval, accusing Gensler of filing suits without investigation and prejudging the crypto industry.
He claimed that the SEC is facing losses in court and has been reprimanded for questionable behavior by judges and the government’s internal auditor. Alderoty even likened Gensler to an insulate character from the film A Few Good Men, highlighting his admission of no fault.
As Joseph P. Kennedy, the first @SECGov Chair, once said: “We are not prosecutors of honest business, nor defenders of crookedness. We are partners of honest business & prosecutors of dishonesty. We shall not prejudge, but we shall investigate.”
Check out my recent remarks: pic.com/QM2zqj8PQs
— Gary Gensler (@GaryGensler) November 16, 2023
The Legal Battle Unfolds
In the midst of this, Ripple and the SEC are entangled in a legal battle. The SEC has accused Ripple of conducting an illegal sale of securities. Alderoty’s disapproval of Gensler’s declaration reflects the escalating tension between Ripple and the SEC, making the legal landscape more contentious.
#Ripple Reality Checks About the #SEC with @s_alderoty #UBRI Connect 2023 pic.com/nEFmDd7faS
— 707Crypto (@707_crypto) November 15, 2023
Ripple’s Victories and the SEC’s Stand
Despite the ongoing legal feud, Ripple has secured victories over the SEC, including a court ruling that its token, XRP, classified it as a non-security. Furthermore, the SEC dropped charges against Ripple’s CEO and co-founder, considering it a significant retreat. Despite these developments, the SEC remains resolute in pursuing the case against Ripple.
Reports suggest that the SEC intends to engage with Ripple regarding the pending violations associated with the institutional sales of XRP. The ongoing dispute has further intensified the Ripple-SEC standoff, presenting significant challenges.
Hot Take: Implications for Ripple and the SEC
As the Ripple-SEC legal battle unfolds, the confrontations between Stuart Alderoty and Gary Gensler underscore the intensity of the conflict. Ripple’s victory in court and the SEC’s determination to contest the ruling have amplified the contentious nature of the dispute. The escalating tensions between Ripple and the SEC pose significant implications for the future direction of the regulatory landscape within the crypto industry, fueling uncertainty and volatility.
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