Ripple chief legal officer Stuart Alderoty has expressed reservations about the recent string of legal defeats suffered by the United States Securities and Exchange Commission during Gary Gensler\u2019s tenure. These remarks follow another setback for the SEC in the Fifth Circuit Court after Ripple\u2019s victory in the XRP lawsuit in July 2023.<\/p>\n
Alderoty characterized this sequence of events as a \u201cdeeply concerning trend\u201d in which the SEC, under the leadership of Chair Gary Gensler, appears to be straying from its commitment to upholding the law. Alderoty expressed concern about the SEC\u2019s repeated arbitrary and capricious actions in court cases, suggesting a troubling pattern under Gensler\u2019s leadership.<\/p>\n
The Fifth Circuit Court of Appeals in the U.S.\u00a0deemed the SEC\u2019s stock buyback disclosure rule as arbitrary and lacking reasonable explanation on Oct. 31. The court has provided an opportunity for the SEC to demonstrate a thorough consideration of pertinent matters and provide a good basis for its decision. This development follows the SEC\u2019s recent defeats in the XRP lawsuit and the Grayscale filing, which could hold significance for the crypto industry\u2019s regulatory future.<\/p>\n
The legal action, initiated by multiple U.S. business and trade associations, revolves around an SEC regulation mandating issuers to report daily information on share repurchases every quarter and to provide the rationale behind repurchasing their own stock.<\/p>\n