Ripple Labs Inc’s General Counsel, Stuart Alderoty, has raised serious concerns about the United States Securities and Exchange Commission (SEC) and its relentless efforts to clamp down on the cryptocurrency ecosystem. According to Alderoty, the SEC’s actions appear to be more of a political power play than a genuine effort to protect investors.
Ripple CEO’s Allegations
Alderoty’s response was triggered by a tweet from Ripple’s CEO, Brad Garlinghouse, who accused the SEC of waging a retail protection campaign that has severely impacted investors. Alderoty echoed these sentiments and further criticized the SEC for wielding its power in a market where it lacks jurisdiction.
SEC’s Claims on Crypto as Securities
The Ripple CLO pointed out that the SEC insists on treating cryptocurrencies as securities, even when they do not meet the criteria. Alderoty argued that without security to regulate, the SEC should not enforce any rules. He firmly believes that the SEC’s actions are politically motivated and are not benefiting anyone in the crypto community.
“A securities agency only has jurisdiction over securities. No security, no role for the SEC. Pretending to have jurisdiction when there is none, is simply a political power play. It helps no one; it hurts everyone,” Alderoty stated in his tweet.
Criticism of SEC’s Stance in the Ripple Lawsuit
The SEC’s stance in the lawsuit with Ripple has drawn severe criticism from the company’s executives and stakeholders in the digital currency ecosystem. The market regulator has hinted at the possibility of appealing the verdict. XRP is not a security when sold on the secondary market.
Positivity for XRP in Case of Appeal
Crypto legal experts have weighed in, explaining that XRP stands to benefit if the SEC chooses to appeal the summary judgment. The appeal process could extend for up to two years, during which XRP would likely be recognized as a non-security. It is allowing it to continue trading on major exchanges.
The Ripple vs SEC lawsuit is a highly significant case in the crypto ecosystem. Its latest ruling is considered the de facto precedent that may shape other similar cases in the future.
In conclusion, the ongoing battle between Ripple and the SEC over the classification of cryptocurrencies. As securities have taken a political turn, with Ripple’s CLO accusing the SEC of a power play. As the case continues, the crypto community awaits the outcome that could have significant implications for the industry’s future.