Stuart Alderoty, Ripple‘s Chief Legal Officer, has responded to the recent comments made by Gary Gensler, the Chairman of the U.S. Securities and Exchange Commission (SEC).
Gensler emphasized the wisdom of the SEC’s first chairman, Joseph P. Kennedy, stating that the agency positions itself as a supporter of honest businesses and an enemy of fraud.
Ripple vs SEC Case
Gensler recently made a statement at the Securities Practice Forum, saying that they will “not be biased, but will investigate” in 2023.
In response to Gensler’s statement, Alderoty argued that the SEC chairman has shown a biased approach in the Ripple case.
Contrary to Gensler’s statement, Ripple’s Chief Legal Officer seemed to make statements closer to the truth during the ongoing legal battle and added the following:
First, Ripple was not accused of “fraud,” and second, the case was made “biased” by a settled Hinman Document.
The Hinman Document, which plays a key role in guiding the regulatory status of cryptocurrencies, has made the Ripple case more complex. It has caused conflicts of interest among individuals associated with a law firm involved in the case.
In addition to his comment, Alderoty stated that the SEC filed lawsuits against Ripple and many other companies without any justification or prior investigation.
Furthermore, Stuart Alderoty drew attention to the difficulties the SEC has been facing recently in his tweet, highlighting the criticism the agency has received from judges due to its losses in court and its behavior deemed “questionable.”
The government’s internal watchdog criticized the SEC, contributing to the criticism by raising questions about its internal practices.
XRP Price Amidst FUD from the Lawsuit
The prolonged Ripple vs SEC case is strengthening the FUD surrounding XRP. Following the partial victory in the decision, XRP saw a surge of over 70% in its price on July 13. However, XRP has mostly underperformed since then, leading to a 50% loss in value.
Stuart Alderoty advised businesses to stand up against regulatory overreach and fight back when faced with the implementation of potential regulations.
The price of XRP is primarily influenced by the outcome of the Ripple vs SEC case. Investors closely follow the possible decisions of the lawsuit to either maximize profits or minimize losses.
