Ripple’s CLO Slams SEC’s ‘Hypocritical Pivot’

Ripple’s chief legal officer (CLO), Stuart Alderoty, has criticized the U.S. Securities and Exchange Commission (SEC) for its latest filing, calling it a “hypocritical pivot.” In a Twitter thread, Alderoty voiced his concerns over the SEC’s actions and questioned the agency’s consistency and fairness in regulating the cryptocurrency industry.

The SEC has been locked in a legal battle with Ripple Labs since December 2020, alleging that the company conducted an unregistered securities offering through its sale of XRP tokens. Ripple has vehemently denied the allegations, asserting that XRP is a digital currency and therefore, outside the jurisdiction of the SEC.

Alderoty’s criticism stems from the SEC’s recent request to access Ripple’s legal memos, which the company argues should be protected by attorney-client privilege. The CLO asserts that the SEC’s filing contradicts its earlier stance when it claimed that the lawsuit was solely about whether XRP is a security or not.

According to Alderoty, the SEC’s request for privileged documents demonstrates a “complete about-face from the position they asserted months ago.” He accuses the regulatory agency of attempting to gather evidence to support its claims rather than focusing on the key issue of defining XRP as a security.

Alderoty questions the SEC’s fairness in its treatment of Ripple compared to other digital asset companies. He highlights the agency’s inaction against major players in the industry, such as Bitcoin and Ethereum, both of which had initial coin offerings (ICOs) but were not subjected to the same legal scrutiny as Ripple.

The CLO’s criticism is backed by many in the cryptocurrency community who argue that the SEC’s lawsuit against Ripple has created regulatory uncertainty in the market. They believe the lack of clear guidelines and inconsistency in enforcement actions hinder innovation and investment in the digital asset space.

Alderoty’s statements also echo Ripple’s assertion that the SEC’s lawsuit has damaged the company’s reputation and hindered its ability to conduct business. Ripple claims that many cryptocurrency exchanges have delisted or suspended trading of XRP due to the SEC’s allegations, causing significant financial losses.

This latest development in the Ripple-SEC legal battle sheds light on the complex regulatory landscape surrounding cryptocurrencies. Many argue that the lack of clear regulations from governing bodies like the SEC has hindered innovation and created uncertainty for market participants.

The outcome of the Ripple-SEC lawsuit will likely set an important precedent for the future regulation of cryptocurrencies in the United States. If the court rules in favor of Ripple, it could potentially lead to a more favorable regulatory environment for digital assets. On the other hand, a ruling against Ripple may reinforce the SEC’s authority and increase regulatory scrutiny in the industry.

As the legal battle continues, industry participants and cryptocurrency enthusiasts eagerly await further developments and hope for clarity and consistency in the regulatory landscape. This case will play a vital role in determining the future of cryptocurrencies and their relationship with regulatory bodies like the SEC.