- The public representative of 75,000 XRP holders accuses Gensler of fraud and manipulation
- Ethereum consultant claims institutions inflicted a $19.2 trillion loss in US household wealth
In a recent interview with Bloomberg, SEC chair Gary Gensler said applying security laws to cryptocurrency would protect investors’ interest. According to John Deaton, XRP lawyer, this is tantamount to fraud and manipulation of public opinion.
An “unelected bureaucrat”
Gensler’s statements were also condemned by Stuart Alderoty, chief legal officer of Ripple, who tweeted:
What’s most concerning to me (and should be to you) in the full video clip is the shocking admission of an unelected bureaucrat that he won't respect the decisions of the Courts.
Gensler said that investors still benefited from disclosure and could make a more informed choice based on that, adding:
Investors benefit from laws against fraud and manipulation and other conflicts in the market.
Deaton, who publicly represents 75,000 XRP holders, accused Gensler of fraud and public manipulation on X. He stated investors only needed protection from the SEC’s anti-crypto regulations.
A whooping $19T loss
Ethereum consultant Steven Nerayoff has claimed institutions inflicted a $19.2 trillion loss in US household wealth through manipulation and fraud during the housing crisis.
Federal courts ruled in favor of Grayscale against the SEC, terming the latter’s claims arbitrary and frivolous.
Conflicting and hypocritical viewpoints
In the Ripple trial, Judge Netburn called the SEC’s conflicting views hypocritical. Paul Grewal, chief legal officer of Coinbase, also used that word when commenting on the filing of an interlocutory appeal.
According to him, the SEC wrongfully argued with the “question of law” threshold for interlocutory appeal. Stuart Alderoty finds the SEC’s interlocutory appeal filing to be deceitful and ineffective.
In July, Judge Analisa Torres of the Southern District of New York (SDNY) ruled the “offer and sale of XRP on digital asset exchanges did not amount to offers and sales of investment contracts” in the case of Ripple Labs vs. SEC.
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