A new set of developments have emerged from the ongoing legal tussle between the crypto financial firm Ripple and the Securities and Exchange Commission. The tussle, which has been ongoing since 2020, has gathered a lot of attention both in the crypto industry and among spectators.
Ripple’s legal counsel, Stuart Alderoty, as well as the company’s chief technology officer (CTO), David Schwartz, have taken to the public to openly criticise the SEC action.
SEC On The Verge Of Abitrariness
The Securities and Exchange Commission (SEC), which has been widely tagged as “the cop of the crypto space,” has continued to live up to its name in the way it persistently seeks out new prospects to probe and investigate.
This year, the SEC reportedly has hit a whopping record of $6.4 billion in penalties awarded and compensations on behalf of the industry’s investors.
Gary Gensler, who is the chairman, has publicly expressed his happiness with the new improvements. However, it appears that the key players in the crypto industry, especially, the executives of Ripple, refuse to be moved.
Also read:According to Stuart Alderoty, who holds the position of Ripple’s legal counsel, the SEC’s actions are unnecessary and, if anything, amount to a flagrant display of abuse of power.
He has taken to the public to openly condemn the SEC for engaging in practises that are devoid of morals and also for essentially seeing to the end of BlockFi.
SEC Devised The End Of BlockFi
BlockFi was one of the first crypto firms to feel the negative impact of the popular crypto exchange FTX’s fall. The crypto lending firm had to put a pause on withdrawals in November.
Following the SEC’s investigation, it announced that the crypto firm had violated the registration and antifraud provisions of the Securities Act and the registration provisions of the Investment Company Act of 1940 (ICA), and BlockFi was fined accordingly.
Ripple’s legal counsel has criticised this and taken to his Twitter page to claim that nothing was registered in the agreement between BlockFi and the SEC.
According to him, BlockFi did not have the capacity to pay, and apparently the crypto lending firm had gone to FTX, thus necessitating its suspension of withdrawals after the fall of FTX.
According to him, the SEC has successfully robbed the investors that it was supposedly set out to protect in the first place.
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