Ripple’s Chief Legal Officer, Stuart Alderoty, has responded to U.S. SEC Director Gurbir Grewal’s assertions regarding the crypto industry’s alleged noncompliance. During a segment of the “SEC Speaks” event sponsored by the Practicing Law Institute, Grewal criticized the crypto industry for creative attempts to evade “clear” rules, accusing it of noncompliance.
In a sharp retort, Alderoty highlighted the irony of Grewal’s claim that the regulatory agency acts with integrity. He pointed to legal events where federal courts have chastised the SEC for failing to act in good faith. Notably, the SEC faced sanctions for gross abuse of power in its lawsuit against DEBT Box.
Alderoty also cited a district judge’s admonishment of the agency’s lack of faithful allegiance to the law during the Ripple lawsuit. Additionally, he referenced a court declaration that the SEC acted arbitrarily and capriciously in the lawsuit against Grayscale Investments.
Furthermore, Alderoty criticized Grewal’s selective citation of only a portion of the Ripple ruling, ignoring the court’s favorable ruling in favor of XRP.
Regarding the SEC’s purported guidance to the crypto industry, Alderoty pointed out inconsistencies within the Howey test. These inconsistencies, according to the agency’s former General Counsel, have led to “greater confusion.”
