In its latest filings, the U.S. Securities and Exchange Commission (SEC) has reiterated its stance, which has drawn criticism from Ripple and other industry stakeholders. Ripple’s chief legal officer, Stuart Alderoty, referred to the SEC’s filing as another “hypocritical pivot,” highlighting what he perceives as Chairman Gary Gensler’s contradictory behavior and a hunger for power in pursuing regulatory overreach. Alderoty pointed out that while Gensler claims the need for an urgent appeal, he simultaneously asserts that the regulations and rules governing the crypto industry are clear and must be followed.
Lawyer James K. Filan also joined in the criticism, mocking the SEC for suddenly expressing concern about conserving judicial resources after previously seeking a stay on all proceedings. Pro-XRP lawyer John E. Deaton explained that those unfamiliar with the U.S. SEC v. Ripple Labs case might find Alderoty’s response harsh, but it is simply a reflection of the federal judge presiding over the case, who has used words like “arbitrary and capricious” and “hypocrisy” to describe the SEC’s actions and inconsistent positions.
Lawmakers, policy experts, and leaders in the crypto industry have been vocal in urging the SEC to abandon its irrational approach, which they believe is detrimental to the growth and development of the industry. The SEC’s repeated assertions and perceived disregard for court decisions have raised concerns about the agency’s behavior and its impact on the crypto ecosystem. Many argue that a more balanced and collaborative approach is needed to foster innovation while ensuring investor protection.
As the legal battle between Ripple and the SEC continues, industry observers eagerly await the outcome and hope for a resolution that promotes clarity, fairness, and a constructive regulatory environment for the crypto industry.