Ripple lawyer calls SEC’s latest filing “hypocritical pivot”

Stuart Alderoty, Ripple’s chief legal officer and general counsel in the SEC vs. 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 a recent filing by the SEC to reinforce its interlocutory appeal, Alderoty posted on X (formerly Twitter) referring to the submission as another instance of a “hypocritical pivot.“ Alderoty highlighted what he sees as SEC Chair Gary Gensler’s inconsistency, manipulative actions and appetite for expanded regulation.

He highlighted that Gensler had requested an urgent appeal despite 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.”

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

The SEC’s argument that Judge Torres should stay the proceedings because the SEC is all of a sudden concerned about conserving judicial resources is laughable.

— James K. Filan (@FilanLaw) September 8, 2023

Pro-XRP lawyer John Deaton said that those not well-versed in the case might find Alderoty’s response to the SEC 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 SEC’s assertions as “arbitrary and capricious.“ 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?