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SEC vs Ripple: Gary Gensler’s crusade

SEC vs Ripple. A review by a Bitcoin mixer: mixer.money
SEC vs Ripple: Gary Gensler’s crusade

  1. Ripple Labs gets backing to fight SEC
  2. Questions for the SEC
  3. Conclusions

The activities of the SEC chairman are perplexing and alarming for US senators. Gensler’s crusade against cryptocurrencies has not been prepared financially or legislatively, senators and congressmen say. Gensler’s actions already resemble paranoia and gradually even the most “obedient” enforcers of SEC edicts begin to fight their activities, as is the case in the SEC case against Ripple.

Ripple Labs gets backing to fight SEC

The US Securities and Exchange Commission (SEC) sued Ripple and its CEO and co-founder Chris Larsen in December 2020 over the sale of XRP, arguing that the cryptocurrency token is a security.

As a result, by November 2022, support for Ripple Labs in its fight with the SEC over XRP had increased, with 12 amicus briefs filed.

“It’s unprecedented,” Brad Garlinghouse, the CEO of Ripple, commented. He also said that each brief explains in its own unique way “the irreparable harm the SEC will do to every facet of the US crypto economy if it gets its way.”

SEC vs Ripple. Ripple CEO Brad Garlinghouse

Even Coinbase, which had been one of the first trading platforms to delist XRP after an SEC lawsuit, filed an amicus brief (“Friend of the Court”) – in this case, an expert opinion in support of Ripple.

In addition to Coinbase, other individuals, companies and organizations that have filed on behalf of Ripple include ICAN, Tapjets, I-Remit, Blockchain Association, Spendthebits, John E. Deaton, Valhil Capital, Crypto Council for Innovation, Chamber of Digital Commerce, Cryptillian Payment Systems, and Veri DAO LLC.

Commenting on the SEC looking for more time to respond to all the amicus briefs filed, Stuart Alderoty, Ripple’s general counsel, wrote on November 3: “A dozen independent voices – companies, developers, exchanges, public interest and trade assoc.’s, retail holders – all filing in SEC v Ripple to explain how dangerously wrong the SEC is. The SEC’s response? We need more time, not to listen or engage, but to blindly bulldoze on.”

Questions for the SEC

Two lawmakers requested answers from the SEC about the process of creating regulations on cryptocurrency. Their request follows a recent report from the SEC’s inspector general that “raises significant concerns that the agency is trying to enact too many rules, too quickly.”

US Senator Pat Toomey (R-PA) and Rep. Patrick McHenry (R-NC) sent a letter to the Commission’s Chairman Gary Gensler requesting information about the agency’s rulemaking process.

The letter mentions several problems identified in an October report issued by the SEC Inspector General (IG), the independent office that conducts, oversees and coordinates inspections and investigations of SEC programs and operations.

Senator Toomey wrote on November 4, “I’m deeply concerned by the IG report finding that the SEC is enacting rules without sufficient feedback.”/p>

US Senator Pat Toomey

According to the letter, the report “raises significant concerns that the agency is trying to enact too many rules, too quickly — in some cases using temporary staff with little or no rulemaking experience — to the detriment of investors, businesses, and American capital markets.”

The report notes that between January and August of 2022, the Commission proposed 26 rules, more than double the number proposed for all of 2021 and more than were proposed in each of the previous five years.

After the report was published, House Member McHenry commented, “A damning new IG report shines a light on Gary Gensler’s reckless leadership of the SEC.” He added, “Chair Gensler’s attempt to force a progressive agenda through our capital markets is taking resources from the SEC’s core mission — including investor protection.”

Rep. McHenry

He also commented, “By largely cutting these offices out of the rulemaking process, your office has restricted their opportunity to provide important and meaningful feedback about the impact of draft rules on investors and small businesses.”

The lawmakers ended their letter with a list of questions about how the SEC plans to address the problems identified in the IG report. They asked Gensler to respond no later than November 16.

Also last week, four congressmen accused Gensler of “hypocritical mismanagement of the SEC,” saying that he refused to practice what he preaches. The chairman was also criticized for taking an enforcement-oriented approach to regulating the crypto industry.

Conclusions

Gensler is slowly turning the SEC into his personal weapon against the crypto market. Apparently, he cannot tolerate a new phenomenon that does not fit within the framework of standard law and economics. This intransigent approach has already hit private investors, and is now threatening the big players in the crypto world as well.


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