SEC's Unchecked Power Under Fire: Ripple and Coinbase Push Back! – Coinpedia Fintech News
Ripple’s Chief Legal Officer is criticizing the SEC and its Chair, Gary Gensler, for their recent legal defeats and questionable actions.
SEC has been accused of violating the Administrative Procedure Act and acting arbitrarily and capriciously.
The Government Accountability Office’s revelation that the SEC’s SAB 121 rule was drafted without input from regulators.
Ripple’s Chief Legal Officer (CLO), Stuart Alderoty, is leaving no stone unturned in his efforts to critique the U.S. SEC and its Chair, Gary Gensler.
Following in the footsteps of Coinbase’s Chief Legal Officer, Paul Grewal, who openly ridiculed the SEC and Gensler for mistakes affecting the crypto industry, Alderoty and XRP advocates, including John Deaton, have joined the chorus of disagreement.
Ripple’s CLO Takes Aim at Gary Gensler
On November 2, Stuart Alderoty shared a scathing opinion piece from The Wall Street Journal titled, “Is Gary Gensler ever going to win a case?”
This move comes on the heels of another legal defeat handed to Gensler by the Fifth Circuit Court of Appeals. The court criticized the SEC’s stock buyback rule in the U.S. Chamber of Commerce v. SEC lawsuit.
The SEC has been repeatedly accused of violating the Administrative Procedure Act, with federal judges now openly declaring that the SEC has acted arbitrarily and capriciously.
Even Grayscale, a significant player in the crypto world, has been arguing that the SEC’s denial of GBTC’s conversion to a spot Bitcoin ETF is a direct violation of both the APA and the Exchange Act.
Read This: Gary Gensler Might Not Be Replaced Due to President Biden’s Influence
Slamming the SEC: Coinbase CLO Speaks Out!
Coinbase’s Chief Legal Officer, Paul Grewal, didn’t hold back either. Grewal remarked on this pattern of defeats, saying, “Before it was the DC Cir. in Grayscale, now, it’s the 5th Cir. in a challenge to its stock buyback disclosure rule.
Again and again, federal courts of appeal have held that the SEC acted arbitrarily and capriciously in violation of the Administrative Procedure Act. These repeated legal setbacks have many in the crypto community questioning the SEC’s actions.
Meanwhile, the Government Accountability Office (GAO) fueled the fire. They revealed that the SAB 121 rule by the U.S. SEC was drafted without input from regulators and the public. The consequences of these revelations could have a significant impact on the crypto industry and the SEC’s standing.
Read More: SEC Accused of ‘Breaking the Law’: Congress and GAO Challenge SEC’s Controversial Crypto Accounting Rule
Challenging SEC’s Credibility
Pro-XRP lawyer John Deaton has also raised their voices in response to the SEC and Gensler’s losing streak. Deaton called the Commissioners to step into leadership roles rather than acting as political operatives.
He expressed concerns about the SEC’s credibility, which has been eroding due to repeated defeats. Deaton went further, urging the Financial Services Committee to issue a subpoena. He highlighted the glaring contrast between the SEC’s actions and the subpoenas received by American entrepreneurs.
Are SEC’s Actions Politically Driven?
Bill Morgan echoed similar sentiments, emphasizing the alleged political motivations behind the SEC’s actions. He stressed the need for the SEC to cease what he described as bullying the crypto industry.
Do you agree with the criticism of Gary Gensler’s leadership? What do you think he should do differently?
Source: Read Full Article