Ripple accused SEC of using a “delay card” and urge to pass the judgment at full tilt

• Ripple General Counsel Stuart Alderoty accused the US Securities and Exchange Commission of using the “delay card” in a recent Twitter discussion.

• Alderotti also criticized the SEC for employing “enforcement by the rule” to collect donations.

• Ripple is also expecting a court judgment on its bid to get internal SEC papers, which might explain why the SEC gave Ethereum a break rather than XRP.

Stuart Alderoty worked for over two decades for old, traditional banks, performing “a little soul-crushing” labor. A headhunter approached him three years ago and asked whether he would be interested in becoming general counsel for Ripple, which was then a seven-year-old company.

Ripple handles payments using blockchain technology and also offers its own cryptocurrency, XRP, making it a pioneer in a tiny but fast-developing industry.

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Ripple’s General Counsel Stuart Alderoty accused the US Securities and Exchange Commission of using the “delay card” in a recent Twitter discussion. He asked the agency to proceed with the matter “as soon as possible.”

War of rules

Ripple CEO Brad Garlinghouse recently criticized former SEC chairman Jay Clayton for taking a pro-cryptocurrency stance after attempting to suffocate the industry with a last-minute lawsuit against Ripple.

SEC Chairman Gary Gensler recently used a metaphor to emphasize the importance of enforcement rules. He said that if teams could flout the rules without fear of punishment, the game would become unfair.

Alderotti, on the other hand, criticized the SEC for employing “enforcement by rule” to collect donations, stating that it creates an unequal playing field with winners and losers.

Ripple and the SEC recently issued a joint letter to Judge Sarah Netburn seeking that the expert search deadline is extended until February 28 because of the rising pandemic crisis.

The expert search is set to conclude on January 19, although the court is largely likely to grant the motion. Due to travel issues and “unforeseen personal matters,” eight expert witnesses have yet to testify. No other deadlines are likely to be affected by the deferral.

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Ripple finds a ray of light in delay

In December, the Securities and Exchange Commission filed a lawsuit against Ripple, its creator and executive chairman Chris Larsen, and CEO Brad Garlinghouse, claiming the firm of raising $1.3 billion in unregistered digital-asset securities. The essence of the SEC lawsuit is that XRP is a security, not a currency, and as such is subject to rigorous securities rules.

According to Fox Business reporter Charles Gasparino, Ripple’s legal team sees a ray of light in the delay since witnesses will be able to testify for seven hours.

Ripple is also expecting a court judgment on its bid to get internal SEC papers, which might explain why the SEC gave Ethereum a break rather than XRP.