According to Ripple CLO, the SEC, under the leadership of Gary Gensler, is acting as if it is exempt from responsibility for the repercussions of its decisions.
Stuart Alderoty, Chief Legal Officer of Ripple, has directed yet another jab at Gary Gensler’s SEC leadership.
This follows recent criticism of the agency’s conduct in the DEBT Box case by Coinbase CLO Paul Grewal.
Alderoty drew attention to flaws in the leadership of SEC Chair Gary Gensler.
Ripple CLO Questions Gary Gensler’s SEC Leadership
Alderoty, which cited a tweet by the CLO of Coinbase, accused the SEC of functioning as a “police state” that is “exempt from the consequences of its actions” during the tenures of Gary Gensler and Enforcement Director Gurbir Grewal.
This occurs in the context of increasing scrutiny regarding the SEC’s case management, which includes the contentious DEBT Box scandal.
Furthermore, Alderoty’s statements emphasize the increasing tensions between Ripple and the SEC in the ongoing legal dispute between the two organizations.
Moreover, amid the “controversial leadership” of Gensler, Ripple has maintained a steadfast stance in its opposition to the SEC’s regulatory approach.
Previously, Alderoty questioned Gensler’s willingness to continue serving the SEC if President Joe Biden is re-elected, to which he responded, “Who else would hire him?”
Without hesitation, Ripple CLO disclosed all the errors that the SEC had committed while under Gensler’s supervision.
Additionally, Gensler was characterized by Alderoty as “politically toxic” and a “serial loser.”
“His staff was caught lying to judges, his agency’s Twitter account was hacked in the most embarrassing way, and his sponsor at MIT resigned due to close Epstein ties,” the CLO of Ripple added.
Furthermore, the recent remarks intensify the tensions in the ongoing legal dispute between Ripple and the SEC.
Coinbase CLO on DEBT Box Drama
Before this, Paul Grewal vehemently criticized the SEC for its silence despite its admission of deceit in the DEBT Box case.
In a recent thread, the Coinbase CLO emphasized the SEC’s erroneous interpretations, claiming that “the TRO against DEBT Box was tainted.”
Furthermore, Grewal underscored the SEC’s lack of accountability, stating that “rather than pulling its order after admitting deception, the SEC sat silently.”
Therefore, Coinbase defied the SEC’s asset freeze order, with Grewal stating, “We wouldn’t comply further unless they explained why we should.”
In rectifying the error, the exchange unfroze assets while the SEC maintained its silence.
Grewal deemed the SEC’s response inadequate and advocated for more extensive remedial measures.
A misrepresentation of information in court by SEC attorneys led to unfounded allegations against DEBT Box, which sparked the controversy.
U.S. District Judge Robert Shelby also criticized the SEC for its conduct.
Furthermore, Republican senators, including J.D. Vance and Cynthia Lummis, conveyed their concerns regarding the matter in a letter to Gensler.
