SEC’s Legal Battles with Crypto Entities Draw Sharp Criticism from Legal Experts
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With the SEC embroiled in a series of legal battles against various crypto entities, Alderoty’s critical remarks come as a bold challenge, echoing a courtroom theme where judges have raised eyebrows at the SEC’s handling of these matters. In almost all the cases filed by the SEC, the regulators got a serious backlash both inside and outside court. Many experts took a jab on Gary Gensler’s role and their misleading actions to protect the fraudsters like Sam Bankman-Fried and favoring ETH gateways.
SEC’s Troubling Pattern Analysed By Legal Fraternity
Stuart Alderoty, Ripple’s top legal expert, has highlighted a string of legal cases exposing what he perceives as inconsistencies and deficiencies within the U.S. Securities and Exchange Commission (SEC). Alderoty’s recent X social media posts address several instances where courts criticized the SEC’s conduct in crypto-related matters.
In the SEC v. Ripple case, the court accused the SEC of hypocrisy and a disregard for legal principles. Similar rebukes occurred in other cases like Coinbase, Grayscale, and most recently, Debt Box, where the SEC was ordered to explain misleading representations, catching the attention of billionaire Mark Cuban.
SEC’s Debt Connect Speaks A Lot?
The federal judge overseeing a case involving Debt Box and the US SEC has also rebuked the regulators for misleading representations. This critique came after the SEC allegedly presented false and misleading data to freeze millions of dollars in assets belonging to Debt Box. The judge expressed concern over the agency’s actions, stating they caused substantial harm to the company, and ordered the SEC to explain why it should not face sanctions for these actions.
The question comes to everyone’s mind How can regulatory bodies be so unprofessional while dealing with risk assets? Is it political pressure or something is brewing inside the agency?
However, Alderoty’s broader critique extends beyond recent events. He cited the Supreme Court’s reprimands of the SEC, labeling it “bloated, broken, and beleaguered.” Alderoty criticized the SEC’s timing in the Kraken lawsuit and its use of the term “crypto asset securities,” which he views as lacking legal grounding. His posts reflect a growing frustration with the SEC’s strategies and its perceived inability to navigate the changing landscape of cryptocurrencies.
John Deaton Joins In
John Deaton’s recent X post also underscores the ongoing issue of the SEC’s conduct in crypto-related cases. He highlights a federal judge considering sanctions against the SEC for allegedly misleading the court in a crypto case, suggesting this isn’t a surprise given the agency’s past behavior.
Deaton criticizes SEC lawyers for their handling of these cases, citing instances where judges have criticized the agency’s approach and Congress’s reluctance to issue a subpoena despite concerns about the SEC’s actions. He urges congressional oversight, calling for action to address what he sees as an unchecked SEC and the need to challenge the agency’s overreach through legal means.
Filed under: Bitcoin - @ December 2, 2023 6:14 am