The Securities and Exchange Commission (SEC) is in the spotlight once again in relation to Ripple, and not for the right reasons. This time, Ripple’s Chief Legal Officer (CLO) has made some revelations as it pertains to the Commission and how they tried to box the crypto firm into a corner.
The SEC Initially Offered To Settle With Ripple
In a post on his X (formerly Twitter) platform, Ripple’s CLO Stuart Alderoty revealed that the SEC had offered to settle with the crypto firm before the Commission commenced the lawsuit against them. Alderoty’s revelation happened to come on the anniversary of the commencement of the suit as the Commission sued Ripple and its executives on December 22, 2020.
As part of the settlement terms, Ripple’s CLO mentioned that the SEC had told the crypto firm that it would announce to the market that XRP is a security. Once that was done, the Commission was then going to give the market a short window to “come into compliance.” Ripple, however, declined these terms and instead chose to battle the regulator in court.
Alderoty also revealed why Ripple made this decision rather than taking what many will consider a less expensive option, considering how much money is usually spent on lawsuits. According to him, the crypto firm did this because they were certain that XRP wasn’t a security and the fact that the SEC had not built a framework for crypto compliance.
That decision turned out to be the right one, seeing how things have turned out. Earlier this year, Judge Analisa Torres ruled that XRP wasn’t a security after almost three years of seeking legal clarity on the issue. Ripple’s CLO also expressed how the company put “everything on the line,” and many expected that they were going to fail.
XRP price at $0.61 | Source: XRPUSD on Tradingview.com
Gensler’s SEC Has Become a Travesty
In a separate post, Alderoty has lashed out at the SEC and its Chair Gary Gensler, noting how the Commission has become a “travesty.” The lawyer’s remark was in relation to the SEC’s response to the court’s order for it to show cause in the Debt Box Case.
The Court in the Debt Box Case had found that the SEC had made misrepresentations and ordered that it show cause why it shouldn’t be sanctioned. In response, the Commission admitted its wrongdoing as it misled the Court.
What seemed concerning to Alderoty was the fact that the SEC had lied to the court, and as a show of remorse, it said it was going to train its Attorneys about the need to be honest when addressing the Court. Such a response is undoubtedly alarming, considering that it is coming from the Government that is meant to play by the books.