Stuart Alderoty, the chief legal officer at Ripple, recently spoke out against the U.S. Securities and Exchange Commission’s (SEC) latest legal setback, calling it the agency’s “anti-crypto crusade” that is now falling apart.
The Third Circuit Court of Appeals criticized the SEC for its “arbitrary” and “capricious” actions in rejecting Coinbase’s petition for comprehensive rulemaking. The SEC has been asked to provide an explanation for its decision.
The court emphasized that the SEC’s sporadic enforcement of ill-fitting rules against various cryptocurrency companies goes beyond the scope of combatting fraud.
Alderoty believes that Judge Stephanos Bibas has exposed what the cryptocurrency industry has been voicing for years. He argues that the current SEC administration was trying to effectively ban the industry by selectively applying securities laws.
Did Coinbase really win?
While Coinbase’s Chief Legal Officer, Paul Grewal, claimed victory in their petition for a writ of mandamus at the Third Circuit, attorney Fred Rispoli disagrees. Rispoli states that Coinbase lost on most arguments, and the petition issue can be addressed by the SEC upon remand.
However, Alderoty sees promise in the concurrence highlighted by the court, as it aligns with Ripple’s appellate argument.
“There is an excellent concurrence by Judge Bibas (p.50) that perfectly reflects what Ripple is appealing: the outdated rules from a century ago are not suitable for the crypto industry,” he noted.