Ripple’s legal chief asks for damages in SEC case under Gensler

Ripple's Chief Legal Officer Stuart Alderotti has expressed his dismay at the latest string of legal defeats by the US Securities and Exchange Commission under Gary Gensler's tenure. These comments follow another setback for the SEC at the Fifth Circuit Court of Appeals after Ripple's July 2023 victory over XRP.

Alderoty described this sequence of events as “significantly indicative of a trend” in which the SEC, under the leadership of Chairman Gary Gensler, appears to have abandoned its commitment to enforcing the law. Alderoty also expressed concern about the SEC's repeated arbitrary and capricious actions in court cases, pointing to a worrying situation under Gensler's leadership.

Another day and another court finding that the SEC once again acted arbitrarily and covertly. Does anyone else think this outrageous SEC approach under Mr. Gensler violates the integrity of the law? https://t.co/5bUgSBUOI8

— Stuart Alderoty (@s_alderoty) November 1, 2023

The Fifth Circuit Court of Appeals in the US held that the SEC's stock purchase disclosure rule was arbitrary and lacked a reasonable explanation on October 31st. The court gave the SEC an opportunity to consider the relevant issues in depth and provide a sound basis. His own decision. This development follows the SEC's recent defeats in the XRP lawsuit and the Grayscale filing, which could have regulatory implications for the crypto industry in the future.

The legal action launched by several US trade and business associations revolves around an SEC rule requiring issuers to report quarterly and daily information about stock buybacks and provide the rationale behind their own stock buybacks.

RELATED: Ripple exec and XRP community don't object to SEC Commissioner LBRY's lawsuit

Judge Annalisa Torres, on October 25, 2023, in Ripple v. US SEC charges Ripple CEO Brad Garlinghouse and executive chairman Chris Larson have publicly denied the allegations. There are also developments regarding the institutional sale of XRP. Judge Torres requested a joint timeline brief from both sides in this case. The summary judgment, dated July 13, 2023, was a split judgment in favor of Ripple on retail XRP token sales.

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