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Ripple, Coinbase CLO Call Out SEC for “Misleading” Courts In Other Crypto Suits

Ripple CLO Stuart Alderoty and Coinbase CLO Paul Grewal Slam SEC for misleading courts in other lawsuits similar to Debt Box case.
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Ripple, Coinbase CLO Call Out SEC for “Misleading” Courts In Other Crypto Suits

Highlights

  • Ripple CLO Stuart Alderoty said the SEC has abused its power to present false and misleading evidence in other lawsuits.
  • Coinbase CLO Paul Grewal and other lawyers urge actions against the SEC by US Congress.
  • SEC lawyers intentionally lied in federal courts for jurisdiction over crypto industry.

Ripple and Coinbase chief legal officers join the wider crypto and legal industries to slam the U.S. Securities and Exchange Commission (SEC) over misleading the court and gross abuse of power assigned by the U.S. Congress in the Debt Box case.

Ripple and Coinbase executives believe the ruling holds further evidence that lawsuits against crypto companies are erroneous and must be dismissed, including Coinbase and Ripple lawsuits. The industry and regulators must work to bring clear guidance for the crypto industry.

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Ripple and Coinbase Executives Slam at SEC and Gensler

Judge Robert J. Shelby’s opinion in Debt Box case sanctioning the U.S. SEC for abuse of power and lying in federal court is a big decision for the crypto industry. The SEC asked the judge to dismiss the lawsuit with prejudice to avoid sanctions and penalties. On the contrary, Debt Box requested the judge to deny SEC’s dismissal request. Finally, the court ruled in favor of Debt Box and asked the SEC to pay all legal costs for the defendants.

Ripple CLO Stuart Alderoty said the judge sanctioned the SEC for abusing its power to present false, mischaracterized, and misleading evidence. The SEC obtained a temporary restraining order in the controversial $50 million fraud lawsuit against Debt Box.

“If anyone thinks this conduct by this agency under this leadership is limited to this case, I have a bridge in Brooklyn to sell,” asserts Stuart Alderoty. He argues the SEC has confessed to false statements in the Debt Box lawsuit and the SEC’s actions in other crypto lawsuits are no different.

Coinbase CLO Paul Grewal also calls out the SEC for undermining the integrity of court proceedings and the judicial process. He is dissatisfied with the SEC’s politically biased approach under Chair Gary Gensler and gradually diminishing the credibility of the securities regulator.

Also Read: Slerf Price Rallies 65% As Jupiter, HTX, & Beeple Extend Support

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Lawyers Says “It’s a Sad Day”

Other lawyers including James “MetaLawMan” Murphy and Bill Morgan criticized the SEC lawyers for unfaithful allegiance to the law and intentionally bringing actions against the crypto industry.

They said, “It is a sad day”. The opinion will be cited by litigants in cases to come. Lawyers believe it’s time for the SEC to answer accountability to the Congress.

Moreover, the SEC also denied Coinbase’s petition for rulemaking to bring clear regulations and guidance for the crypto industry. Now, Coinbase and other bodies such as the U.S. Chamber of Commerce lobby for crypto regulatory clarity in the U.S., especially after the spot Bitcoin ETF trading.

Also Read: Binance Assigns Prime Brokers to Conduct Checks to Identify US Investors

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Varinder Singh

Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.

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Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
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