Ripple CLO Takes Another Jab At Gary Gensler Amid DEBT Box Backlash

Ripple’s Chief Legal Officer, Stuart Alderoty, has taken another aim at Gary Gensler’s leadership at the SEC. This comes after recent criticism from Coinbase CLO Paul Grewal regarding the agency’s actions in the DEBT Box case. Adding to the claims made earlier, Alderoty highlighted loopholes in SEC Chair Gary Gensler’s leadership.

Ripple CLO Casts Doubt On Gary Gensler’s SEC Leadership

Quoting Coinbase CLO’s tweet, Alderoty accused the SEC, under Gary Gensler and Enforcement Director Gurbir Grewal, of operating like a “police state,” which is “exempt from consequences of its actions.” This comes amidst growing scrutiny over the SEC’s handling of cases, including the controversial DEBT Box fiasco.

Moreover, Alderoty’s remarks underscore escalating tensions between Ripple and the SEC, as the legal battle between the two entities continues. Furthermore, it has been seen that Ripple has remained vocal in its criticism of the SEC’s regulatory approach under Gensler’s “controversial leadership.”

Earlier, when Gensler stated that he would continue serving the SEC if President Joe Biden bags another term, Alderoty questioned, “Who else would hire him?” The Ripple CLO didn’t hesitate and spilled everything the SEC had done wrong under Gensler’s supervision. Moreover, Alderoty labeled Gensler as “politically toxic” and a “serial loser.”

The Ripple CLO added, “His staff has been caught lying to judges, his agency’s Twitter account was hacked in the most embarrassing way, and his sponsor at MIT quit because of close Epstein ties.” Moreover, the recent comments just add to the heat amid the ongoing Ripple vs SEC legal battle.

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Coinbase CLO’s Stance On DEBT Box Drama

Earlier, Paul Grewal strongly criticized the SEC, condemning its silence despite admitting deception in the DEBT Box case. In a recent thread, the Coinbase CLO highlighted the SEC’s misinterpretations, stating, “the TRO against DEBT Box was tainted.” Moreover, Grewal emphasized the SEC’s lack of accountability, noting, “rather than pulling its order after admitting deception, the SEC sat silently.”

Therefore, Coinbase defied the SEC’s asset freeze order, with Grewal stating, “We wouldn’t comply further unless they explained why we should.” The exchange unfroze assets, correcting the wrong, while the SEC remained silent. Grewal criticized the SEC’s response as insufficient, calling for broader corrective actions.

The controversy stemmed from the SEC’s lawyers misstating information in court, resulting in false accusations against DEBT Box. Moreover, U.S. District Judge Robert Shelby rebuked the SEC for its actions. In addition, Republican senators, including J.D. Vance and Cynthia Lummis, sent a letter to Gensler, expressing concerns regarding the case.

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