Ripple CLO Stuart Alderoty and Coinbase CLO Paul Grewal criticize the SEC for misleading courts in other lawsuits similar to the Debt Box case.
In the Debt Box case, Ripple and Coinbase chief legal officers join the wider legal and crypto communities in condemning the U.S. Securities and Exchange Commission (SEC) for misleading the court and grossly abusing the authority entrusted to it by the U.S. Congress.
Coinbase and Ripple executives agree that the ruling provides additional support for the claim that litigation filed against cryptocurrency companies, including Ripple and Coinbase, is frivolous and should be dismissed.
The crypto industry and regulators must collaborate to establish unambiguous guidelines.
Ripple and Coinbase Executives Criticize SEC and Gensler
The opinion of Gensler Judge Robert J. Shelby in the Debt Box case, which sanctions the U.S. SEC for abuse of power and lying in federal court is a significant development within the crypto industry.
To prevent sanctions and penalties, the SEC requested that the lawsuit be dismissed with prejudice by the magistrate.
Debt Box, on the contrary, petitioned the magistrate to reject SEC’s request for dismissal.
However, in the end, the court ruled in favor of Debt Box and ordered the SEC to reimburse the defendants for all legal expenses.
Ripple CLO Stuart Alderoty said the judge sanctioned the SEC for exploiting its authority to present false, misrepresented, and misleading evidence.
Additionally, Debt Box was the subject of a controversial $50 million fraud lawsuit in which the SEC secured a provisional restraining order.
“If anyone thinks this conduct by this agency under this leadership is limited to this case, I have a bridge in Brooklyn to sell,” asserts Stuart Alderoty. He argues the SEC has confessed to false statements in the Debt Box lawsuit and the SEC’s actions in other crypto lawsuits are no different.
Furthermore, Coinbase CLO Paul Grewal calls out the SEC from the judicial process and court proceedings for undermining their integrity.
He is dissatisfied with the SEC’s progressively eroding credibility and politically biased approach during Chairman Gary Gensler’s tenure.
Lawyers Says “It’s a Sad Day”
The SEC lawyers faced criticism from other legal professionals, such as James “MetaLawMan” Murphy and Bill Morgan, who accused them of betraying the law and deliberately initiating legal proceedings against the crypto industry.
They remarked, “It is a sad day.” Litigants will cite the opinion in subsequent cases.
Meanwhile, lawyers hold the view that the SEC should assume responsibility for its actions before Congress.
In addition, the SEC denied Coinbase’s request for rulemaking to provide the cryptocurrency industry with explicit regulations and direction.
Following the spot Bitcoin ETF trading, Coinbase and other organizations including the U.S. Chamber of Commerce are now advocating for regulatory clarity regarding cryptocurrencies in the United States.
