Ripple’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC) has taken a new turn as the company’s general counsel, Stuart Alderoty, accused the SEC of having a biased stance against the crypto industry. Alderoty argued that the SEC did not follow the principle of investigating without prejudice, as quoted by SEC Chairman Gary Gensler in his recent address.
The controversy surrounding Ripple dates back to December 2020 when the SEC charged the company with securities law violations related to its sale of XRP, the digital asset associated with Ripple. However, the SEC faced a setback when Judge Analisa Torres ruled that XRP should not be considered a security. The judge found that Ripple’s programmatic sales were legal, except for certain past and direct sales to institutional clients. This ruling was seen as a significant win for Ripple, as it challenged the SEC’s position on the regulatory status of cryptocurrencies.
Alderoty’s criticism of the SEC’s handling of the case stems from his belief that the regulatory body had a preconceived bias against the crypto industry. He argued that this bias has influenced the SEC’s legal actions, leading to a lack of thorough investigation. In his address, Gensler had quoted Joseph P. Kennedy’s philosophy of not prejudging but investigating, but Alderoty believes that the SEC did not adhere to this principle in Ripple’s case.
It is worth noting that Ripple is not the only crypto entity facing legal action from the SEC. The regulatory body has also filed lawsuits against other crypto companies such as Coinbase and Binance. Despite these ongoing cases, Gensler has consistently maintained that Bitcoin is the only cryptocurrency that falls outside of the SEC’s regulatory perimeter.
The outcome of the Ripple-SEC legal battle will have significant implications for the broader crypto industry. It could potentially set a precedent for the regulatory treatment of digital assets and determine the level of scrutiny and oversight that crypto companies will face in the future. As the case continues to unfold, industry participants and regulators alike will be closely watching the proceedings and the ultimate decision reached by the court.
In conclusion, Ripple’s general counsel, Stuart Alderoty, has accused the SEC of having a biased stance against the crypto industry in the ongoing legal battle between the two parties. The controversy dates back to December 2020 when the SEC charged Ripple with securities law violations related to its sale of XRP. However, a recent ruling by Judge Analisa Torres found that XRP should not be considered a security, providing a significant win for Ripple. The outcome of this case will have wide-ranging implications for the crypto industry as a whole, and all eyes will be on the court’s decision.
