Ripple Legal Chief Expresses Concerns Over SEC's Recent Court Losses Under Gensler's Leadership

Ripple Chief Legal Officer Stuart Alderoty has expressed concerns about the U.S. Securities and Exchange Commission's (SEC) recent string of losses in court cases under the leadership of Gary Gensler. This comes after another setback for the Commission in a fifth circuit court following the XRP lawsuit victory in July 2023.

US SEC's Rule "Arbitrary and Capricious"

On October 31, 2023, the US Court of Appeals for the Fifth Circuit ruled that the Commission's rule on stock buyback disclosure was arbitrary and capricious. The court gave the agency an opportunity to demonstrate that it has reasonably considered the relevant issues and explained its decision. This ruling adds to the SEC's recent losses in the XRP lawsuit and Grayscale filing, which could have significant implications for the regulatory standing of the crypto ecosystem.

The lawsuit, filed by various business and commerce associations in the US, pertains to an SEC rule that requires issuers to report daily share repurchase data once a quarter and disclose the reasons for repurchasing shares of their own stock.

Ripple Legal Chief: "Very Troubling Pattern"

Stuart Alderoty of Ripple described these developments as a "very troubling pattern" of the SEC disregarding its duty to uphold the law under the leadership of Gary Gensler. Alderoty expressed his concerns about the SEC's actions, stating, "Another day and another court finds that the SEC has acted arbitrarily and capriciously. Is anyone else concerned about this very troubling pattern of the SEC flouting the law under Mr. Gensler?"

Earlier, on October 25, 2023, Judge Analisa Torres granted an order to drop charges against Ripple CEO Brad Garlinghouse and executive chairman Chris Larsen in the Ripple vs. U.S. SEC lawsuit. Additionally, there have been developments regarding the institutional sales of XRP, with Judge Torres requesting a joint scheduling brief from the two parties. The July 13, 2023 Summary Judgment resulted in a split verdict, with Ripple winning on the retail sale of XRP tokens.