Tensions escalate as Ripple’s Chief Legal Officer, Stuart Alderoty, launches a scathing attack on the Chair of the Securities and Exchange Commission (SEC), Gary Gensler. This latest development in the legal battle between Ripple and the SEC highlights the increasing friction and the high stakes involved for both Ripple and the wider cryptocurrency industry. It also demonstrates how cryptocurrency has become entwined in the U.S. presidential election.
Alderoty’s criticism of Gensler on Twitter accuses him of misusing his power and becoming a political liability in his role. Alderoty suggests that Gensler underestimated the complexity of the crypto industry and relished in being a controversial figure, but now finds himself struggling politically.
Interestingly, Alderoty’s comment reflects the growing frustration within the cryptocurrency community. Another post highlighted the SEC’s high political profile, noting that it is unprecedented for a presidential contender to mention the SEC Chair by name or for a sitting President to threaten to veto legislation related to the SEC. This political aspect adds another layer of complexity to the ongoing legal battle.
The Ripple case’s implications extend beyond the immediate parties involved. Uniswap, for example, has referenced the Ripple case in its own legal dispute with the SEC, particularly regarding the nature of airdrops. The SEC’s contradictory stance on airdrops has been highlighted, with pro-XRP attorney Bill Morgan stating that it makes no sense for some tokens given away to be considered non-securities while others sold are deemed securities. The conditions of the sale should determine their classification.
Meanwhile, the SEC’s recent filing opposing Ripple’s request to redact and seal specific material has intensified the legal conflict. The SEC argues that it is illegal for Ripple to withhold financial and securities sales data from the public. The regulator emphasizes that the court’s decision-making process relies heavily on the information Ripple seeks to redact, including sales statistics, financial information, and discounts offered to institutional investors. The fines and remedies in the case also depend on this information.
At the time of writing, XRP is valued at approximately $0.5302, a decrease of 2.22% from the previous day. However, it has seen a 4.84% increase over the past seven days, indicating a bullish position. Additionally, Ripple has reportedly trademarked RLUSD, its new dollar-based stablecoin, further showcasing its ongoing developments in the cryptocurrency space.