- Ripple’s Chief Legal Officer, Stuart Alderoty, along with prominent XRP advocates, has openly criticized the SEC’s legal strategies and losses in court.
- Federal courts have repeatedly found the SEC in violation of the Administrative Procedure Act, highlighting a pattern of arbitrary rulings.
A Persistent Legal Tug-of-War
Ripple’s Chief Legal Officer (CLO) Stuart Alderoty has not shied away from critiquing the United States Securities and Exchange Commission (SEC) and its chairman, Gary Gensler. In a sharp-witted reference to the SEC’s recent court setbacks, Alderoty shared a Wall Street Journal op-ed posing the pointed question:
“Is Gary Gensler ever going to win a case?”
This rhetorical query comes on the heels of the Fifth Circuit Court of Appeals’ ruling against the SEC, condemning the agency’s rules on stock-buybacks as unfounded, in the case of U.S. Chamber of Commerce v. SEC. It’s a notable addition to a series of judicial reprimands for the SEC’s disregard for the Administrative Procedure Act (APA), underscoring the argument that the agency has frequently engaged in arbitrary and capricious rule-making.
The SEC’s Regulatory Quagmire
The scrutiny of the SEC’s approach has intensified with revelations from the Government Accountability Office (GAO). The GAO pointed out that the SEC’s SAB 121 rule was instituted without stakeholder or public consultation, breaching not only the APA but also the Congressional Review Act’s mandates.
A United Front of Legal Experts
Coinbase’s CLO Paul Grewal has echoed similar sentiments, remarking on the significance of the judiciary as a bulwark against regulatory overreach. The sentiment of judicial protection is echoed across the cryptocurrency legal landscape, as influential figures like John Deaton and Bill Morgan weigh in. Deaton has called upon the SEC Commissioners to rise above political maneuvering and uphold their duties as impartial regulators.
He has also made a vocal appeal for the Financial Services Committee to exert its authority and issue a subpoena, signaling a growing frustration within the crypto community over what is perceived as selective enforcement by the SEC.
Morgan’s perspective paints a stark image of the current state of affairs, indicting the SEC’s actions as politically charged and demanding an end to what he views as the intimidation of the crypto industry. This collective critique signals a robust challenge to the SEC’s current regulatory posture, with significant implications for the future of digital asset governance.
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