The U.S. Securities and Exchange Commission (SEC) chairman, Gary Gensler, recently declared at a gathering that “we [regulators] are partners of honest business and prosecutors of dishonesty.”
But others in the crypto world took exception to this declaration, and Stuart Alderoty, Chief Legal Officer of Ripple Labs, quickly refuted Gensler’s claims.
Despite being sued, Alderoty noted that Ripple was never accused of “dishonesty.” This refutes Gensler’s assertion that the SEC only targets dishonest companies.
Alderoty went on to say that Gensler has perpetuated the bias in the Ripple case by bringing lawsuits without doing adequate investigations, continuing the biased start of the case under former SEC head Bill Hinman.
Over three years ago, the SEC and Ripple started a court battle centered on claims of violations of securities laws. The July ruling by the court that only institutional XRP sales qualified as securities was a partial triumph for Ripple.
Interestingly, Ripple’s clients never suffered financial losses, refuting Gensler’s recent statements. Additionally, the company was never accused of being dishonest.