Recent confrontation between Ripple and the United States Securities and Exchange Commission (SEC) has gained a new chapter. Stuart Alderoty, the Chief Legal Officer of Ripple, launched scathing criticism against the SEC and its chairman, Gary Gensler, in a landmark post on November 16th.
Alderoty, highlighting Ripple’s recent successes in its legal battle with the SEC, compared Gensler to an iconic movie villain: Colonel Nathan R. Jessup, from “A Few Good Men,” a 1989 play and an acclaimed 1992 film. This analogy emphasizes the perception of institutional indoctrination within the SEC, suggesting a rigid and uncompromising stance on the part of its president.
Alderoty’s criticism did not stop there. He pointed to the SEC’s setbacks on several judicial fronts, including losing cases and reprimands for questionable behavior, as noted by judges in several instances. Additionally, the government’s internal auditor criticized the SEC for its controversial approach to handling cryptocurrency-related accounting reports.
The SEC is losing in court; being criticized by Judges for shady behavior; being rebuked by the Gov’t’s internal auditor; hiding info about meetings with a felon; becoming irrelevant on the international stage. Gensler – admitting no fault – has become the insulate Col. Jessep. pic.twitter.com/vqjPPcifr8
— Stuart Alderoty (@s_alderoty) November 16, 2023
The most controversial point highlighted by Alderoty was the relationship between the SEC and Sam Bankman-Fried, former CEO of the now-defunct cryptocurrency exchange FTX. According to him, the SEC failed to become relevant on the international stage, especially due to its failure to disclose details about meetings with Bankman-Fried.
The SEC faced additional scrutiny over a Zoom call between Gensler and Bankman-Fried in March 2022. That meeting, not officially recorded under the SEC’s own protocols, drew criticism for alleged conflicts of interest and close ties to a figure now accused of multiple frauds.
Brad Garlinghouse, CEO of Ripple, echoed Alderoty’s concerns in October following a significant win for his company. Garlinghouse criticized the SEC for diverting its attention from crucial issues while engaging in secret meetings with entities like FTX, failing to protect both U.S. consumers and businesses.
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