Ripple’s Stuart Alderoty, alongside prominent XRP lawyers, is challenging the leadership of the U.S. SEC in the face of a string of legal setbacks. Their vocal critique raises significant questions about the regulatory decisions made within the cryptocurrency sector, drawing attention to ongoing concerns within the industry about the SEC’s actions and their potential consequences.
Ripple’s Chief Legal Officer (CLO), Stuart Alderoty, along with prominent XRP attorneys, have taken a bold stance in criticizing the United States Securities and Exchange Commission (SEC) and its Chair, Gary Gensler, in the wake of the regulatory body’s recent legal setback. These expressions of discontent have emerged at a time when the cryptocurrency community is growing increasingly concerned about the SEC’s recent decisions and their potential ramifications for the industry.
Alderoty, who has become progressively vocal in his disapproval of the SEC’s actions, has recently aligned himself with Coinbase’s CLO, Paul Grewal, in lampooning the regulatory agency for its missteps that have negatively impacted the cryptocurrency sphere. Notably, Ripple is presently entangled in a legal tussle with the SEC regarding the sale of XRP tokens, lending added weight to Alderoty’s statements.
Ripple Executive’s Tweet Spurs Scrutiny Of SEC’s Legal Strategies
Ripple’s Alderoty took Gensler and the SEC to task, with his tweet on November 2 referencing a Wall Street Journal op-ed that posed the question, “Will Gary Gensler ever secure a legal victory?” This tweet followed Gensler’s recent legal setback, as the Fifth Circuit Court of Appeals reprimanded the SEC’s stock-buyback rule in the U.S. Chamber of Commerce v. SEC case. This ruling has intensified scrutiny of the SEC’s legal strategies and decision-making procedures.
Prominent legal experts and insiders in the industry have swiftly pointed out that federal judges have consistently characterized the SEC’s actions as arbitrary and capricious, running afoul of the Administrative Procedure Act (APA). For instance, Grayscale has been at the forefront of challenging the SEC’s refusal to permit the transformation of Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin exchange-traded fund (ETF), contending that this constitutes a breach of the APA and the Exchange Act.
Furthermore, the Government Accountability Office (GAO) recently disclosed that the SEC’s SAB 121 rule was crafted without any input from regulators or the public, thereby constituting a clear violation of the APA and the Congressional Review Act.
Joining the growing chorus of critics, prominent XRP attorneys John Deaton and Bill Morgan have voiced their concerns about the SEC’s series of losses under Gensler’s leadership. Deaton has called on the SEC Commissioners to adopt a leadership role rather than acting as political operatives, underscoring the detrimental impact of the SEC’s losses on its credibility.
Deaton has taken an additional measure by urging the Financial Services Committee to request a subpoena. He emphasized that “the FSC’s failure to issue a subpoena, while hundreds of American entrepreneurs receive them from Gary, is noteworthy.”
Bill Morgan, another vocal advocate for the XRP community, has contended, “It’s all politically motivated and driven by a political agenda.” He firmly believes that the SEC should desist from its purportedly heavy-handed treatment of the cryptocurrency industry, suggesting that its actions are propelled more by political interests than a genuine commitment to regulatory oversight.
As the SEC grapples with a continuing series of legal setbacks, the queries raised by Stuart Alderoty, John Deaton, Bill Morgan, and other stakeholders in the cryptocurrency sector have only heightened the scrutiny on Gary Gensler’s leadership and the regulatory decisions made by the SEC. The trajectory of the SEC’s actions in the cryptocurrency domain remains a subject of substantial concern and debate within both the cryptocurrency community and the broader public.