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Ripple Legal Head Criticizes SEC’s Recent Courtroom Failures
Ripple's Chief Legal Officer, Stuart Alderoty, criticizes the SEC for its series of legal setbacks and arbitrary actions under Gary Gensler's leadership.
Ripple's Chief Legal Officer, Stuart Alderoty, has raised concerns over a series of legal setbacks experienced by the US Securities and Exchange Commission (SEC), suggesting a deviation from lawful practices under Gary Gensler's leadership.
In his critique, Alderoty pointed out a concerning pattern of arbitrary decisions and capricious actions by the SEC in recent court cases. This pattern was evident in Ripple’s victory in the SEC's lawsuit against them back in July 2023 and, more recently, in the SEC's loss at the Fifth Circuit Court.
The Fifth Circuit Court recently ruled against the SEC, labeling its stock buyback disclosure rule as lacking a reasonable explanation and being arbitrary in nature. This has provided the SEC with a chance to reevaluate and present a well-justified basis for its regulations. This incident, coupled with the SEC’s previous legal challenges including the XRP lawsuit and the Grayscale filing, underscores the agency's inconsistent approach to enforcement.
The ongoing legal battle, instigated by various US business and trade groups, revolves around an SEC rule that requires issuers to disclose daily share repurchase data quarterly and justify their stock buyback activities.
On October 25, 2023, Judge Analisa Torres dismissed the charges against Ripple's CEO, Brad Garlinghouse, and Executive Chairman, Chris Larsen, marking a significant development in the Ripple v. US SEC case. Additionally, the court has called for a joint scheduling brief from both parties regarding institutional sales of XRP. The July 13, 2023 Summary Judgment resulted in a split verdict, favoring Ripple on retail XRP token sales.
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