In a recent development, Stuart Alderoty, the lead attorney for Ripple, has openly criticized the U.S. Securities and Exchange Commission (SEC) via social media platform X, pointing out what he perceives as inconsistencies and inadequacies in the SEC’s management of cryptocurrency-related cases. This critique comes amid ongoing legal battles where courts have criticized the SEC for its methods and decisions.
Coinbase, a prominent cryptocurrency exchange, is currently embroiled in a significant dispute over ambiguous crypto regulations with the US Securities and Exchange Commission (SEC). Earlier this year, Coinbase filed a Mandamus petition to obtain regulatory clarity. However, the SEC dismissed the claims made by Coinbase, citing a lack of evidence to support their allegations.
In the Grayscale v. SEC case, the SEC faced criticism for treating similar products termed “arbitrary and capricious.” Moreover, in the recent case against Debt Box, the court instructed the SEC to justify potential sanctions for making false and misleading representations. Billionaire Mark Cuban also highlighted this case in a recent X post.
Ripple’s Legal Head Slams SEC’s Actions
Concerning the Grayscale conflict, the SEC rejected the firm’s petition to convert its Grayscale Bitcoin Trust (GBTC) to a physically backed product. Alderoty emphasized the court’s scrutiny of the SEC’s “inconsistent treatment of similar products.”
In recent social media posts, Alderoty expanded his discontent and criticized the SEC’s broader strategy. He referenced a Wall Street Journal article that showcased the Supreme Court’s repeated rulings against the SEC, describing the agency as “bloated, broken, and beleaguered.”
Ripple’s top lawyer specifically scrutinized the SEC’s actions against Kraken, questioning the timing and approach, particularly criticizing the term “crypto asset securities,” which he argues lacks legal basis. His posts echo mounting frustration with the SEC’s strategies and its apparent inability to adapt to the rapidly evolving cryptocurrency landscape.
These critical comments from Ripple’s legal representative, disseminated across social media, underscore growing concerns within the cryptocurrency industry regarding the SEC’s regulatory approach. As legal battles persist and criticisms escalate, the rift between regulatory bodies and cryptocurrency entities appears to deepen, casting uncertainties over the future of crypto regulation in the United States.