Ripple CLO Weighs In On Flagged SEC’s “Loosey-Goosey” Rules

Ripple Labs’ Chief Legal Officer (CLO), Stuart Alderoty has expressed concerns regarding the perceived lack of clarity in the Securities and Exchange Commission’s (SEC) regulatory framework. Alderoty took to social media platform, X to express his misgivings in a post.

The recent swipe at the SEC comes after a proxy access case involving the NCPPR v SEC being argued in the 5th Circuit where the presiding judge’s remark about the SEC’s rules is “so vague and loosey-goosey that nobody knows whether they’ll be at risk…” has drawn attention to the issue.

Ripple CLO Spots the SEC’s Regulatory Uncertainty

Ripple, a prominent player in the cryptocurrency and blockchain space, has been involved in legal disputes with the SEC over the classification of its associated digital asset, XRP, as a security.

The Ripple CLO has consistently criticized SEC Chair Gary Gensler’s “contentious leadership” and made sure to highlight the “loosey-goosey remarks” of the 5th Circuit judge at every opportunity. Alderoty’s remarks appear to convey a sense of validation underscoring concerns he has persistently spotted.

I don’t know much about this proxy access case argued in the 5th Circuit yesterday, but when a judge says the SEC’s rules are “so vague and loosey-goosey that nobody knows whether they’ll be at risk…,” she may be on to something. NCPPR v SEC. pic.twitter.com/Nj08JTpaEu

— Stuart Alderoty (@s_alderoty) March 6, 2024

In November 2023, Alderoty reacted to Gensler’s speech that was delivered at the Securities Enforcement Forum 2023. Then, Alderoty indicated that Ripple’s case had been preconceived. In contrast to Gensler’s assertion, the Ripple legal boss appears to have emphasized the actual truth regarding the legal dispute highlighting how the firm “was not accused of ‘Dishonesty,’ and furthermore, the case was preconceived with a compromised Hinman’s Bill.”

Similarly, during her ruling, Judge Analisa Torres criticized the SEC’s inconsistent arguments in the Ripple lawsuit, prompting Alderoty to take a swipe at the SEC’s legal team for their string of losses.

The CLO’s constant remarks on the activities of the SEC highlight the importance of regulatory clarity in fostering a conducive environment for innovation and investment within the digital asset space. Alderoty has always maintained a critical view of the SEC calling for fairness and clear leadership devoid of bias.

Ripple Versus SEC Ruling is Close By

Meanwhile, the legal tussle between Ripple and the SEC continues with a resolution on the matter expected by April 2024. 

Despite Ripple achieving significant victories against the US SEC regarding the classification of its XRP sales as ‘securities’, there are lingering uncertainties in this legal dispute. Ripple and the US SEC have been in disagreement regarding access to financial records and the disclosure of XRP sales.

The outcome of the proxy access case and ongoing discussions surrounding regulatory clarity will likely have implications for Ripple and other entities operating within the digital asset space. As such, stakeholders will closely monitor developments on SEC-focused legal battles in and off the crypto realm.