Ripple’s CLO Denounces SEC’s “Police State” Approach
In a recent post on X, Stuart Alderoty, the Chief Legal Officer at Ripple, strongly criticized the US Securities and Exchange Commission (SEC) under the leadership of Gary Gensler. Alderoty joined a discussion initiated by Paul Grewal, Chief Legal Officer at Coinbase, and expressed his disapproval of the SEC’s actions in the DEBT Box case, comparing them to those of a “police state.”
SEC Accused of Misusing Power
Alderoty supported Grewal’s grievances regarding the SEC’s behavior in the DEBT Box case. He criticized the SEC for operating as if it is exempt from the consequences of its actions under Gensler and Enforcement Director Gurbir Grewal. Alderoty emphasized that enough is enough.
Grewal highlighted a concerning scenario where the SEC obtained a Temporary Restraining Order (TRO) against DEBT Box and then instructed Coinbase to freeze assets under threat of sanctions. However, it was later revealed that the TRO was based on misrepresentations by the SEC.
Coinbase Takes Defiant Stance Against SEC
In response to the SEC’s inaction and lack of explanation, Coinbase chose not to comply further. This defiance further fueled the controversy surrounding the SEC’s actions.
Ripple CLO Questions Gensler’s Suitability
This is not the first time Alderoty has criticized the SEC and Gary Gensler. He recently questioned Gensler’s suitability for his role, citing various reasons such as being politically toxic and losing court cases. There have also been concerns about Gensler’s management style and its impact on the SEC’s internal culture.
Tensions Between Ripple and SEC Highlight Industry-Regulatory Body Divide
The ongoing dispute between Ripple and the SEC, as highlighted by Alderoty and Grewal’s comments, sheds light on the tensions between the crypto industry and the regulatory body. The SEC’s actions have been perceived as those of a “police state” agency.
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