The Chief Legal Officer of Ripple Accuses the Chair of the SEC of Fraud and Manipulation

In a heated regulatory argument, Ripple’s chief legal officer Stuart Alderoty accused SEC chair Gensler of fraud using cryptocurrencies.

Chief Legal Officer Stuart Alderoty of Ripple has publicly accused Gary Gensler of fraud and manipulation in his role as Chair of the U.S. Securities and Exchange Commission (SEC).

Their uproar was sparked by Gensler’s recent Bloomberg interview, in which he defended the use of securities legislation to protect against fraud and manipulation in the crypto market.

Ripple has constantly challenged court judgments, and Alderoty did not hold back in his criticism of Gensler’s obvious regard for them. The center of Ripple’s continuous struggle is its search for regulatory certainty in the United States.

But Gensler insists that protecting crypto investors from fraud requires applying securities regulations to the crypto space. Concerns have been voiced by officials from Ripple and Coinbase about the absence of regulation, with both companies pointing out that the SEC does not have authority over cryptocurrencies.

In the case brought by Grayscale, the SEC’s allegations were called “arbitrary and capricious.” Judge Netburn used the word “hypocrisy” to describe the SEC’s apparent double standard in the Ripple case.

SEC’s contention that a “question of law” must exist in order to file an interlocutory appeal has been regarded with skepticism, and the scope of their jurisdiction has not been resolved. Without mincing words, Stuart Alderoty calls the SEC’s interlocutory appeal submission “hypocritical” and “lacking in substantive impact.”

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