Ripple Counsel Criticizes SEC Slow Response in Producing Documents

Alderoty says he’s familiar with SEC’s delay tactics.

Ripple’s general counsel Stuart Alderoty has thrown a subtle jab at the Securities and Exchange Commission (SEC) for delaying releasing requested documents.

Gensler Fails to Comply With Congress’ Request

His latest remark comes after the leadership of the United States House of Representatives Financial Services Committee expressed dissatisfaction at SEC Chair Gary Gensler’s delay in responding to their request for documents related to the arrest of former FTX CEO Sam Bankman-Fried (SBF).

Recall that on February 10, the Committee Chair Patrick McHenry wrote a letter to Gensler, requesting communication between and among the Office of the Chair, SEC’s Division of Enforcement, and the Department of Justice (DOJ) regarding the timing and arrest of the embattled FTX founder. 

For context, SBF was scheduled to testify before the Financial Services Committee on December 13. However, the testimony did not hold as scheduled because SBF was arrested hours before the event. 

Notably, the SEC missed the deadline for producing the requested documents. The securities regulator made matters worse by submitting a 232-page document that did not address the issue at stake. 

In a final push, the legislators set another deadline of April 17 for Gensler to produce the requested documents. 

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“Failure to produce the requested information could result in the Committee considering using compulsory process, if necessary, to obtain the requested information,” the legislators’ warned. 

Ripple’s General Counsel Reacts

Reacting to the development, Alderoty said the scenario “sounds familiar” to him. According to Ripple’s general counsel, it “only” took Ripple 18 months and six court orders to get documents from the SEC. 

Sounds familiar. It only took us…18 months and 6 court orders to get docs from the SEC. https://t.co/YPSXfJRuK1

— Stuart Alderoty (@s_alderoty) April 14, 2023

Ripple’s General Counsel referred to the drafts of the controversial 2018 speech by former director of SEC’s Corporation Finance William Hinman. 

Recall that the SEC made significant efforts to refrain from surrendering the documents to Ripple despite the court ordering the agency to do so. However, the SEC finally bowed to pressure and handed over the documents to Ripple after a year and six months of an intense legal battle.

Meanwhile, attorney Jeremy Hogan, a partner of Hogan & Hogan, also reacted to the SEC’s delay in producing the requested documents to Congress.

Silly Congress.

Where’d they get the idea they have oversight over a Federal Agency? smh…

— Jeremy Hogan (@attorneyjeremy1) April 14, 2023

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