ripple CLO Stuart Alderoty Reveals SEC’s Unfair Treatment Against XRP
In the ongoing legal battle between Ripple and the US Securities and Exchange Commission (SEC), Ripple’s Chief Legal Officer (CLO) Stuart Alderoty, compared the SEC’s actions to the absurdities depicted in Franz Kafka’s novel “The Trial.” Alderoty criticizes SEC for unfair treatment XRP and SEC During the investigation and Wells Notice process, this points to a broader issue affecting other cryptocurrency firms such as Robinhood and Coinbase.
Ripple CLO Criticizes SEC’s Inconsistent Actions
Ripple has consistently argued that the SEC’s handling of the case was marked by inconsistency and unfairness. Ripple CLO’s reference to Kafka’s work is a sharp criticism of what Ripple perceives as the regulator’s opaque and arbitrary actions. According to Ripple, this situation exemplifies the broader challenges facing cryptocurrency firms, which often receive conflicting feedback from the SEC. Other companies, such as Robinhood and Coinbase, have reported similar regulatory hurdles.
The SEC continues to seek serious penalties against Ripple. $2 billion for XRP sales To institutional investors, Ripple responded by filing and sealing certain documents, highlighting that certain financial details could harm its business interests if disclosed. The texts requested by Ripple contain sensitive information about earnings, income, expenses and discounts at which XRP is sold to institutions. Recognizing the importance of these discounts, Ripple refuses to disclose exact financial terms, citing commercial confidentiality.
House Acts Against SEC Crypto Regulatory Overreach
Ripple’s move to seal the documents also aims to protect the identities of non-party financial institutions, customers and employees. The company argues that disclosing this information could compromise its legitimate privacy interests and harm business relationships. XRP’s stance is that such statements would not only impact its partners but also hinder its ability to operate effectively in the market.
Despite heavy demands from the SEC, XRP maintains that any fines should be capped at $10 million. This position reflects Ripple’s belief that the SEC’s pursuit of $2 billion is overly punitive and does not reflect actual circumstances. Ripple’s arguments highlight broader tensions between regulatory practices and business operations in the cryptocurrency industry.
XRP’s legal battle has drawn attention to the SEC’s broader regulatory approach. Stuart Alderoty praised bipartisan efforts in the U.S. House of Representatives to limit the SEC’s overreach in cryptocurrency regulation. Recently, the House voted to overturn the SEC’s decision. Personnel Accounting Bulletin NO. 121 (SAB 121), which requires financial institutions to include their customers’ cryptocurrency holdings on their balance sheets.
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Maxwell is a crypto-economic analyst and Blockchain enthusiast who is passionate about helping people understand the potential of decentralized technology. I write extensively on topics like blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its effects on economic freedom and social well-being.
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