In a development, the U.S. Securities and Exchange Commission (SEC) is under judicial scrutiny for its lawsuit against Ripple.
The court has rebuked the financial regulatory body, typically stringent with cryptocurrency firms, citing alleged inconsistencies and a failure to adhere to legal standards.
Stuart Alderoty, Ripple’s Chief Legal Officer, highlighted these criticisms, underscoring the importance of such judicial scrutiny.
“The SEC is anything but infallible; it is bloated, broken, and beleaguered. Don’t be intimidated when they come knocking,”
The court’s observations prompt inquiries into the SEC’s regulatory practices and their implications for the cryptocurrency industry.
Alderoty pointed to the Coinbase case, where the court agreed that the SEC had failed to respond in good faith to Coinbase’s petition for crypto rulemaking.
Additionally, courts questioned the SEC’s reluctance to approve a spot Bitcoin exchange-traded fund (ETF) and raised concerns about false and misleading representations in the case against Debt Box.
Pro-crypto lawyer Danielle Bates noted that these cases indicate the courts calling out the SEC for acting in bad faith.
As posted on her X (formerly known as Twitter):
SEC Sparks Ripple Speculation
Against this legal backdrop, speculation intensifies with the SEC’s recent closed-door session, particularly piquing the interest of the XRP community.
While such sessions are routine for the SEC, the attention it garnered stems from potential settlement discussions on its agenda.
Although the official announcement did not explicitly reference Ripple or XRP, the timing and context of the meeting fuel conjecture about its potential implications for the ongoing Ripple case.
This speculation underscores the heightened interest and uncertainty surrounding the SEC’s legal battles with cryptocurrency entities, notably Ripple.