Amid an ongoing legal tussle, Ripple chief legal official, Stuart Alderoty, has reacted to the recent statement from the US Securities and Exchange Commission (SEC) Chair. In a recent interview, the SEC Chair Gary Gensler said he won’t respect courts’ decisions regarding the regulator’s position on crypto regulation.
Gensler Says He Won’t Respect Courts’ Decisions
While revealing his concerns over the SEC Chair’s statement, Ripple CLO Alderoty referred to Gensler as an “unelected bureaucrat.”During an interview with Bloomberg TV, Gensler revealed his intention to disrespect the courts’ decisions.
The interview progressed with the SEC Chairman pointing out the advantages of enforcing existing securities laws within the crypto industry. Gensler noted that applying securities law to cryptocurrency is a sure way to protect crypto investors from market manipulations and fraud.
According to the SEC Chair, the securities laws offer investors disclosure protection, such that they make choices based on the available disclosure. Also, he stated:
“Investors benefit from laws against fraud and manipulations, [as well as] other conflicts in the market.”
While discussing appropriate regulation for the crypto space, the SEC Chair cited the need for new rules on naming funds. Based on Gensler’s statement, Francine Lacqua of Bloomberg asked him if US courts could influence or change his opinion concerning cryptocurrency.
Gensler’s response expressed negation of such conditions from the courts’ decisions. Rather, he mentioned that he wants faster aid from the court in enforcing compliance with the securities laws to crypto. Regarding the possibility of a US government shutdown, the SEC Chair noted it would affect its crypto-related activities.
The SEC is supposed to give its decisions over multiple Spot Bitcoin ETFs on its desk in mid-October. Though the SEC could postpone its declaration without a shutdown, a potential one still needs to be clarified regarding the SEC’s delays.
Ripple CLO Reacts to Gensler’s Assertions
SEC Chair Gensler’s statement has created a wave of reaction within the crypto community. Ripple CLO Alderoty is shocked by Gensler’s remarks about not respecting courts’ decisions.
What’s most concerning to me (and should be to you) in the full video clip is the shocking admission of an unelected bureaucrat that he won’t respect the decisions of the Courts. https://t.co/QD0pBDDvTF https://t.co/8cOOc2Z7tb
— Stuart Alderoty (@s_alderoty) September 21, 2023
The Ripple CLO’s major concern could be centered on Gensler’s intention to disrespect the court’s ruling in the SEC case against Ripple. Notably, the SEC had felt a huge loss following the court’s ruling over its lawsuit with Ripple.
The agency had accused Ripple of violating the US federal securities laws through the offers and sales of XRP as an unregistered security. On July 13, the court overturned the SEC’s claims, declaring XRP non-security. Also, the court ruled that all of Ripple’s sales of XRP to retail investors in the secondary market are not securities.
While expressing dissatisfaction with the ruling, the SEC has requested an interlocutory appeal on the case. This will allow the commission to contend with the ruling regarding Ripple’s programmatic sales and other distributions.
Once the court grants the request, the SEC will seek further approval from the Second Circuit. However, the dismissal of the request from the court would deter the agency from pushing forward.
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