- Ripple CLO Stuart Alderoty criticized the SEC as bloated, broken, and beleaguered.
- The lawyer reflected on a recent WSJ report that highlighted the SEC’s recurrent defeats in the Supreme Court.
- XRP lawyer John Deaton lambasted the regulator’s practice of intimidation, urging the community to fight back.
Ripple’s Chief Legal Officer Stuart Alderoty lambasted the U.S. Securities and Exchange Commission (SEC) in a recent X post, in which he described the regulator as “bloated, broken and beleaguered”. Reflecting on a recent Wall Street Journal (WSJ) report that highlighted the SEC’s recurrent defeats in the Supreme Court, Alderoty urged the community, “Don’t be intimidated when they come knocking.”
On November 29, the WSJ published a report that described the Supreme Court’s recent receptiveness to proposals to limit the SEC’s use of special in-house courts, which can be used for enforcement actions against crypto platforms. The matter in question came following a complaint submitted by a group of critics against the SEC’s autocratic power to “rob defendants” of their right to a jury trial. As highlighted by Aldertoy, the report has also pointed out the regulator’s losses in the Supreme Court, stating,
“The Supreme Court has repeatedly ruled against the SEC in recent years. In April, the justices said people and businesses subjected to SEC administrative proceedings can seek to enjoin, or block, those proceedings by suing in a federal district court and raising constitutional arguments there.”
One such notable defeat of the agency was this year’s court ruling that dismissed the SEC’s allegation that Ripple’s XRP is a security. Judge Analisa Torres ruled that the secondary market sale and the programmable sale of XRP cannot be considered under the category of security sale. In a reply to Alderoty’s post, XRP lawyer John Deaton concurred, stressing the agency’s practice of “intimidating people.” He echoed Alderoty’s stance, urging people to “fight” back, claiming that the United States was ”born fighting against government oppression and intrusion.”
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