Ripple’s CLO calls SEC’s latest filing “Hypocritical Pivot”

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Stuart Alderoty, Ripple’s Chief Legal Officer and General Counsel in the SEC v. Ripple Labs case, has characterized the United States Securities and Exchange Commission’s (SEC) latest submission as a “contradictory shift” and contends that it holds little sway. 

Following the recent filing by the U.S. SEC to reinforce its interlocutory appeal, Stuart Alderoty, Chief Legal Officer at Ripple, commented on X, referring to the submission as another instance of a “hypocritical pivot.” Alderoty highlighted what he sees as Chairman Gary Gensler’s inconsistency, manipulative actions and appetite for expanded regulation.

He pointed out that Gensler had requested an urgent appeal while simultaneously asserting that crypto regulations and rules were clear and must be adhered to by the industry.

“Another SEC filing, another hypocritical pivot… After years of its chairman saying the ‘rules are clear and must be obeyed,’ the SEC now cries that an appeal is urgently needed to resolve these knotty legal problems.”

Attorney James K. Filan took a dig at the SEC, ridiculing their newfound concern for preserving judicial resources. He pointed out the SEC’s previous attempt to pause all proceedings in the case.

Renowned pro-XRP attorney John E. Deaton remarked that those not well-versed in the U.S. SEC v. Ripple Labs case might find Ripple CLO Alderoty’s response to the SEC to be harsh. However, for those familiar with the case, Alderoty’s characterization of the SEC as “hypocritical” is simply a reflection of the federal judge presiding over the matter.

Related: Rep. Tom Emmer sponsors amendment to limit SEC’s crypto oversight

In the Grayscale lawsuit, federal judges have criticized the US SEC’s assertions as “arbitrary and capricious.” Meanwhile, in the Ripple XRP case, Judge Netburn employed the term “hypocrisy” to characterize the SEC’s contradictory stances. Additionally, Ripple’s Executive Chairman, Chris Larsen, anticipates that the SEC’s approach of enforcing regulations through legal actions may come to a conclusion in the near future.

Magazine: Crypto regulation — Does SEC Chair Gary Gensler have the final say?