Ripple's Chief Legal Officer Stuart Alderoty Raises Concern Over SEC’s Legal Struggles
Summary:
Stuart Alderoty, Chief Legal Officer at Ripple, has raised concern about the consistent legal losses suffered by the U.S. Securities and Exchange Commission (SEC) under Gary Gensler's leadership. His comments follow SEC's recent defeats in the Fifth Circuit court and the XRP lawsuit. He criticised the SEC for its erratic actions, suggesting a concerning trend under Gensler's direction. The Fifth Circuit Court found SEC's rules on stock buyback disclosures arbitrary, following previously occurred losses in the crypto sector linked to the XRP lawsuit and the Grayscale filing.
Stuart Alderoty, the top legal executive at Ripple, has voiced concerns over the consecutive losses faced by the U.S. Securities and Exchange Commission (SEC) under the stewardship of Gary Gensler. This statement comes in the wake of another SEC defeat in the Fifth Circuit court, coming just months after Ripple's win in the XRP litigation in July 2023.
In his perspective, Alderoty believes that under the guidance of Gary Gensler, there has been a worrying trend in the SEC, which seems to be deviating from its responsibility of enforcing the law. Challenging the SEC's continuous unjustified and whimsical practices in court, Alderoty highlights probable issues arising from Gensler’s direction.
"On another day, another court concludes once again that the SEC has acted without reason or fairness. Is anyone else troubled about the SEC's recurring pattern of disregarding its duty to the law under Mr. Gensler's reign?" Alderoty questioned on Twitter.
On October 31, the Fifth Circuit Court of Appeals in the U.S. considered the SEC’s rules governing stock buyback disclosures as unsystematic and devoid of a sound explanation. The court has offered an opportunity to the SEC to show due consideration to relevant factors and provide a reliable basis for its decision. This occurrence comes in light of various defeats faced by the SEC recently, including the XRP lawsuit and the Grayscale filing. These events could greatly influence the regulatory landscape of the cryptocurrency industry.
The lawsuit in question was launched by numerous U.S. businesses and trade associations. It revolves around an SEC rule that requires issuing companies to report daily buyback details every quarter and justify why they are buying back their own shares. Ripple’s CEO Brad Garlinghouse and Chairman Chris Larsen have been officially cleared of charges by Judge Analisa Torres in the Ripple vs. U.S. SEC lawsuit on October 25, 2023. There have also been updates related to the institutional sale of XRP, with Judge Torres seeking a joint status update from both parties. On July 13, 2023, the court delivered a divided verdict on summary judgment that was in favor of Ripple related to the retail sale of XRP tokens.
Published At
11/2/2023 9:03:05 AM
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