In a recent interview held by Bloomberg, SEC chairperson Gary Gensler was found to disrespect the decision of the Court by advocating his view of applying security laws to cryptocurrencies. Stuart Alderoty, the Chief Legal Officer of Ripple, condemned his statements in a tweet.
Ripple has been fighting consistently to bring legislative clarity to cryptocurrency regulation. However, Gary Gensler, although a member of a 5-man committee, personally believes that applying security laws on cryptocurrency will protect the interest of the investing public.
A Fierce Clash of Opinions Broke Out Soon After
John Deaton, XRP lawyer, the public representative of 75,000 XRP holders, took to X and alleged SEC fraud and public manipulation. He states what investors need protection from is the SEC’s anti-crypto regulations.
According to Steven Nerayoff, an early Ethereum consultant, a $19.2 trillion loss in US household wealth occurred during the housing crisis owing to fraud and manipulation by regulated institutions.
Federal courts in the Grayscale trial branded the US SEC’s assertions “arbitrary and capricious,” while Judge Netburn in the Ripple trial described the SEC’s conflicting viewpoints as “hypocrisy.”
On September 2, XRP lawyer John E. Deaton stated that federal judges and both chambers of the US Congress are noting the hypocrisy of the US SEC. He finds it noteworthy that Coinbase chief legal officer Paul Grewal used the word “hypocrisy” in his remarks on Ripple’s filing of an interlocutory appeal with the SEC.
The SEC incorrectly argued with the “question of law” threshold for interlocutory appeal and neglected to confront its authority. According to Stuart Alderoty, the SEC’s interlocutory appeal filing is disingenuous and has no effect.