Ripple’s chief legal officer, Stuart Alderoty, has some blunt remarks for the U.S. Securities and Exchange Commission (SEC) and its chairman Gary Gensler. Alderoty recently claimed that the SEC is facing legal defeats and is also being lambasted by federal judges due to its shady behavior and concealment of key information.
Alderoty’s Criticism Of SEC
Stuart Alderoty has continued to take aim at the Securities and Exchange Commission after Ripple’s victory in the XRP lawsuit in July 2023.
In a Nov. 16 post on X, Alderoty pointed out the SEC’s losses in court and the intense criticism it faces from U.S. federal judges for what is described as “shady behavior”. The Ripple legal head goes on to state that the government’s internal auditor also criticized the SEC, adding that the securities watchdog has hidden important information regarding its meeting with a felon.
Alderoty recently highlighted the SEC’s loss in the Govil case, where the Second Circuit ruled that the agency cannot demand a massive disgorgement award without first demonstrating that investors endured actual financial distress. This development followed the SEC’s recent defeats in the XRP lawsuit and the Grayscale spot ETF filing, which could hold significance for the crypto market’s regulatory future.
Alderoty then likened SEC boss Gary Gensler to the fictional character Colonel Jessup from Aaron Sorkin’s renowned movie ‘A Few Good Men,’ for failing to admit any fault. The comparison also spotlights Gensler’s stubbornness and resistance to facing criticism.
XRP Lawsuit: Is An End In Sight?
In the ongoing legal brawl between Ripple and the SEC, Judge Analisa Torres has set key dates for the two parties to complete their remedies discovery. According to a letter by Judge Torres based on the parties’ previous letter detailing their availability, Feb. 12, 2024, was set as the date by which both Ripple and SEC should have concluded all discovery related to remedies. The regulator will be given up to March 13, 2024, to file its brief on the restitution it seeks, and Ripple will submit its opposition, if it deems it necessary, by April 12, 2024.
Of the $770 million in damages that the SEC is said to be seeking from Ripple for the illegal unregistered institutional sales, XRP holders’ attorney, John Deaton, has suggested that Ripple is likely to pay way less. Deaton contends that a settlement of $20 million or less would mark a monumental legal triumph for the payments firm.
XRP was changing hands for 61 cents at press time amid a market-wide drawdown, according to CoinGecko. The token jumped double digits earlier this week after a bogus filing suggested that financial behemoth BlackRock was creating an XRP-based exchange-traded fund (ETF). However, XRP quickly tumbled to previous levels after it was confirmed that the filing was fake.