News Opinion Markets Stories and Reviews Technology
April 24, 2024

Ripple vs. SEC: Growing Controversy Surrounding Regulatory Conduct

In Brief

Ripple CEO Brad Garlinghouse garnered attention for his recent critique of the SEC concerning a major lawsuit.

Ripple Chief Executive Officer Brad Garlinghouse garnered attention for his recent critique of the SEC concerning a major lawsuit. In a recent statement, he discussed the timing of Ripple’s opposition brief filing, drawing attention to what he views as a noteworthy coincidence related to the resignation of two SEC lawyers in a separate case.

The departure of SEC lawyers Michael Welsh and Joseph Watkins caught the attention of Garlinghouse, who pointed out the sequence of events. It occurred shortly after a federal court reprimanded the regulatory agency for what was described as a “gross abuse” of power in the Debt Box case. The two lawyers were principal attorneys in a case against Digital Licensing Inc., a crypto platform called DEBT Box.

Garlinghouse took to X, voicing apprehension regarding the enduring impact of the SEC’s actions, stating that the US will grapple with the consequences of the agency’s “disastrous policies” even following Chairman Gary Gensler’s departure.

The DEBT Box case has become controversial, with federal district court judge Robert Shelby revealing false claims, dissemble, as well as the absence of evidence. In a groundbreaking decision, Shelby penalized the agency for its misuse of authority in March, prompting an apology from the SEC’s chief of enforcement for the lapse.

Given these recent developments, Garlinghouse’s reaction is not surprising. He views the parallel between Ripple’s response filing and the resignation of the SEC lawyers as significant. It further reinforces his position on the SEC’s conduct and methods of regulating the cryptocurrency industry.

Upon the SEC’s petition for remedies and ultimate verdict, Ripple submitted a motion to dismiss the new expert materials provided by the SEC and voiced objection to the agency’s plea for a substantial $2B penalty concerning historical institutional sales. Stuart Alderoty, Ripple’s CLO, stressed the absence of allegations or findings of recklessness or fraud in the case, portraying the SEC’s request as unduly aggressive.

Alderoty condemned the SEC’s maneuvers as part of their ongoing campaign of intimidation targeting the entire cryptocurrency sector in the United States. The protracted legal clash between Ripple and the SEC has sparked substantial inquiries into the regulatory environment for digital assets, with repercussions extending well beyond XRP.

Brad Garlinghouse’s outspoken criticism of the SEC’s purported misuse of authority, coupled with the latest advancements in the Debt Box litigation, underscores the escalating friction between regulators and the cryptocurrency sector. With the legal process unfolding, the resolution of this lawsuit holds significant ramifications for Ripple, the SEC, and the broader crypto market. Investors and industry analysts will keenly monitor any forthcoming developments in this pivotal case.

In the previous year of 2023, the SEC initiated 26 enforcement actions related to cryptocurrencies. Critics within the industry argue that these actions constitute overreach. Nonetheless, authorities at the financial oversight agency argue that the crypto industry has warranted their intervention. The SEC maintains that it implemented various recent measures concerning cryptocurrencies to address fraud, curb market manipulation, and enforce more comprehensive disclosure requirements for cryptocurrency holders and exchanges. In any case, sentiment within the crypto community is increasingly unfavorable towards the SEC’s actions with each unfolding case.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Zhauhazyn is a copywriter and sociology major. Fascinated by the intricate dynamics of Science and Technology Studies, she delves deep into the realm of Web3 with a fervent passion for blockchain.

More articles
Zhauhazyn Shaden
Zhauhazyn Shaden

Zhauhazyn is a copywriter and sociology major. Fascinated by the intricate dynamics of Science and Technology Studies, she delves deep into the realm of Web3 with a fervent passion for blockchain.

Hot Stories
Join Our Newsletter.
Latest News

From Ripple to The Big Green DAO: How Cryptocurrency Projects Contribute to Charity

Let's explore initiatives harnessing the potential of digital currencies for charitable causes.

Know More

AlphaFold 3, Med-Gemini, and others: The Way AI Transforms Healthcare in 2024

AI manifests in various ways in healthcare, from uncovering new genetic correlations to empowering robotic surgical systems ...

Know More
Join Our Innovative Tech Community
Read More
Read more
Match Chain Strengthens Leadership Team with Blockchain Veteran Tomasz Wojewoda as Chief Strategy Officer
Stories and Reviews
Match Chain Strengthens Leadership Team with Blockchain Veteran Tomasz Wojewoda as Chief Strategy Officer
May 18, 2024
Retik Finance (RETIK) Will Become a Top 100 Crypto by the End of 2024, Listings on May 21
Stories and Reviews
Retik Finance (RETIK) Will Become a Top 100 Crypto by the End of 2024, Listings on May 21
May 18, 2024
Aleph Zero Launches Alephoria: Exciting Airdrops, Tournaments, and Rewards Await Users
Sponsored Stories and Reviews
Aleph Zero Launches Alephoria: Exciting Airdrops, Tournaments, and Rewards Await Users
May 17, 2024
Alchemy Pay Teams Up With BounceBit To Support Bitcoin Restaking Ecosystem
Business News Report Technology
Alchemy Pay Teams Up With BounceBit To Support Bitcoin Restaking Ecosystem
May 17, 2024