Ripple CLO Stuart Alderoty has expressed concerns about the recent track record of the US Securities and Exchange Commission (SEC) in its legal battles against cryptocurrency companies. In a tweet, Alderoty highlighted the SEC’s series of losses and questioned whether the regulatory body is faithfully upholding the law under Chairman Gary Gensler.
The SEC has been actively filing lawsuits against various crypto exchanges and firms for several years. One ongoing case is its legal battle with Ripple, a provider of crypto solutions. The SEC filed a lawsuit against Ripple in December 2020, alleging that Ripple’s sale of XRP tokens violated federal securities laws. However, Judge Analisa Torres recently ruled that programmatic sales of XRP tokens did not violate these laws, dealing a significant blow to the SEC’s case.
Alderoty’s concerns also extend to the SEC’s attempts to enforce regulations beyond the cryptocurrency industry. The Fifth Circuit Court of Appeals recently rejected a rule proposed by the SEC that would require US companies to provide more detailed information about stock repurchases. The court deemed the SEC’s adoption of the rule as arbitrary and capricious, stating that the agency failed to respond to public comments and conduct a proper cost-benefit analysis.
Amidst these legal setbacks, Ripple has published its quarterly XRP market report, which sheds light on the current status of the legal battle between Ripple and the SEC. The report highlights the increase in crypto scams, rug pulls, and protocol hacks, with approximately $686 million lost in Q3. However, major US crypto exchanges have benefited from listing XRP following Judge Torres’s ruling on programmatic sales.
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The report also reveals that XRP’s trading volume on the XRP ledger has steadily grown, increasing by more than three times in Q3. Despite these developments, there have been no settlement agreements between Ripple, its CEO Brad Garlinghouse, and co-founder Chris Larsen, and the SEC regarding the dismissed charges.
Ripple emphasizes that it publishes the XRP Markets Report to provide transparency and regular updates on industry developments and crypto market movements. The company aims to offer clarity and transparency about its operations and developments.
The concerns raised by Ripple CLO Stuart Alderoty about the SEC’s track record in legal battles against cryptocurrency companies reflect growing doubts within the crypto community about the regulatory body’s ability to protect investors effectively. The recent setbacks faced by the SEC in cases involving Ripple and stock repurchases have raised questions about the agency’s approach and whether it is acting in accordance with the law.
As the legal battles between the SEC and crypto companies continue, it remains to be seen how the regulatory landscape for cryptocurrencies will evolve. The outcome of these cases could have significant implications for the industry and the broader crypto community’s perception of regulatory bodies.
