Ripple CLO Raises Concerns About SEC’s Failures in Legal Battles
Stuart Alderoty, the Chief Legal Officer of Ripple, a leading crypto solutions provider, has expressed his worries about the recent string of legal defeats suffered by the United States Securities and Exchange Commission (SEC) in cases related to the cryptocurrency industry. Alderoty took to social media to highlight his concerns.
The series of losses faced by the SEC is becoming increasingly troubling. One recent case filed by the SEC was rejected by the court, with the ruling stating that the SEC’s actions were “arbitrary.” Alderoty questioned if others are also concerned about this concerning pattern of the SEC disregarding the law under the leadership of Mr. Gensler.
SEC’s Ongoing Legal Battle
The SEC has been involved in multiple lawsuits against crypto exchanges and firms. One of its most prominent ongoing cases is its legal battle with Ripple, Binance, and Grayscale. Grayscale filed a lawsuit against the SEC after its Spot bitcoin ETF application was rejected by the agency.
In December 2020, the SEC filed a lawsuit against Ripple. The trial, which has lasted for three years, has experienced several ups and downs. The SEC suffered a significant loss when Judge Analisa Torres ruled that the programmatic sales of XRP tokens did not violate federal securities laws.
Furthermore, the SEC recently faced another setback when its attempt to introduce a rule requiring US companies to provide more detailed information about stock repurchases was rejected by the Fifth Circuit Court of Appeals. The court stated that the adoption of the proposed law was unjustifiable and called for the SEC to retract and review the rule.
Ripple recently released its quarterly XRP market report, which sheds light on the ongoing legal battle between Ripple and the SEC. The report highlights an increase in crypto scams, rug pulls, and protocol hacks, resulting in approximately $686 million lost in Q3. Following Judge Torres’s ruling on programmatic sales, major US crypto exchanges have gained after listing XRP.
The report also reveals that XRP‘s trading volume on the XRP Ledger has steadily grown, increasing by more than three times in Q3. However, there have been no settlement agreements involved in the dismissal of the charges against Ripple CEO Brad Garlinghouse and Ripple co-founder Chris Larsen by the SEC.
### News source: bitcoinist.com