In a post on X (formerly Twitter), Stuart Alderoty, the Chief Legal Officer (CLO) at Ripple, has vehemently denounced the US Securities and Exchange Commission (SEC) approach under the leadership of Gary Gensler. Leveraging a discussion initiated by Paul Grewal, Chief Legal Officer at Coinbase, Alderoty didn’t mince words, portraying the SEC’s operations as akin to those of a “police state.”
SEC Acts As A ‘Police State’ Agency
Through a detailed post on X, Alderoty amplified Grewal’s grievances regarding the SEC’s actions in the DEBT Box case. He articulated a strong stance against the SEC, suggesting a misuse of power under Gensler’s and Enforcement Director Gurbir Grewal’s watch.
Alderoty’s statement was clear and pointed: “Please read this thread from Coinbase’s Chief Legal Officer. Under Gensler and its Enforcement Director Gurbir Grewal (no relation) the SEC behaves as if it operates in a police state exempt from the consequences of its actions. Enough is indeed enough.”
Grewal’s thread outlined a troubling scenario where the SEC, having secured a Temporary Restraining Order (TRO) against DEBT Box, subsequently directed Coinbase to freeze assets under threat of sanctions. The legitimacy of this order was later questioned due to the revelation that the TRO was based on SEC misrepresentations.
Grewal’s frustration was palpable: “These Senators are even more right than they know…But rather than immediately pulling its order after admitting that it deceived the Court, the SEC sat silently.”
In response to the SEC’s inaction, Coinbase took a defiant stance, as detailed by Grewal: “We then told the SEC we wouldn’t comply further unless they explained why we should. But we were given no explanation at all.” This defiance highlighted the SEC’s reluctance to engage, further fueling the controversy.
SEC Repeatedly Puts Ripple CLO Into Rage
It’s not the first time that Alderoty is slamming the SEC, Gary Gensler and its malicious practices against the US crypto industry.
In a damning assessment, Alderoty recently questioned Gensler’s suitability for his role: “Who else would hire him? He’s politically toxic, he’s a serial loser in the courts, his staff has been caught lying to judges, his agency’s Twitter account was hacked in the most embarrassing way, and his sponsor at MIT quit because of close Epstein ties.”
This broadside was a reaction to Gensler’s assertion of his intent to remain as the SEC’s chair if President Joe Biden is re-elected. Neil Hartner, Senior Staff Software Engineer at Ripple, another failure of Gensler’s leadership, “And he’s a bad boss with SEC staff quitting at the highest rate in 10 years.” This statement underscores a broader discontent with Gensler’s management style and its impact on the SEC’s internal culture.
This ongoing dispute between Ripple and the SEC, highlighted by Alderoty’s and Grewal’s comments, casts a spotlight on the tensions between the crypto industry and the regulatory body which has repeatedly acted as a “police state” agency.
At press time, XRP traded at $0.53198.