Ripple’s Chief Legal Officer, Stuart Alderoty, has highlighted concerning trends in the US Securities and Exchange Commission’s (SEC) approach toward defending actions taken against cryptocurrency firms.
Alderoty emphasized instances where different courts have criticized the regulatory body’s actions.
Court Finds Inconsistencies in SEC vs. Ripple Lawsuit
In the SEC case against Ripple, the court rebuked the financial watchdog for what it deemed as hypocritical behavior. The court found inconsistencies in the SEC’s arguments and criticized the commission for not adhering faithfully to the law.
“The SEC is anything but infallible; it is bloated, broken, and beleaguered. Don’t be intimidated when they come knocking,” Alderoty said.
Alderoty cited another instance involving the crypto exchange Coinbase. According to him, the court agreed that the SEC had failed to respond in good faith to Coinbase’s petition for crypto rulemaking.
Another court described the SEC’s reluctance to approve a spot Bitcoin exchange-traded fund (ETF) as “arbitrary and capricious.” In this case, Grayscale sued the SEC for failing to approve its request to convert its Bitcoin Trust into a Bitcoin ETF.
More recently, a court questioned why the regulator should not be sanctioned for making “false and misleading representations” in its case against Debt Box.
Pro-crypto lawyer Danielle Bates said the cases show that the courts have been calling out the SEC for lying.
“Anyone who is paying attention can see it. SEC has been acting in bad faith and taking advantage of the fact that our government is in a stalemate and has done nothing meaningful in a while,” Bates said.
Closed Doors Meeting Fuel Speculations About XRP
While closed meetings within the SEC are common, the agenda highlighted settlement discussions. It prompted speculation that the Ripple case was a focal point in the discussions.
It should be noted, however, that the official announcement from the regulator does not explicitly mention Ripple or XRP. Still, some members of the XRP community speculate the outcome of the meeting might lead to a settlement.
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