No Settlement in Lawsuit as Ripple CEO and General Counsel Blast SEC in Recent Tweets

An XRP enthusiast said Ripple CEO and General Counsel’s criticism against SEC means there won’t be any settlement in the ongoing lawsuit.

An XRP community member has reacted to recent comments by Ripple CEO Brad Garlinghouse and General Counsel Stuart Alderoty criticizing the Securities and Exchange Commission. Bill Morgan, a pro-XRP lawyer, noted that the unending criticisms from the Ripple executives against the SEC show that the blockchain company is not planning to settle with the regulator.

Morgan made this known in response to Garlinghouse’s criticism of the SEC chairman’s recent assertions.

I guess you and @s_alderoty hammering the SEC and Gensler in recent tweets means you are not about to sign a settlement agreement, in which case hammer away. https://t.co/PCHMqH32iq

— bill morgan (@Belisarius2020) March 30, 2023

Garlinghouse Slams Gensler over recent comments

Ripple CEO Brad Garlinghouse reacted to a recent assertion by SEC chairman Gary Gensler, claiming that the agency takes the lead in determining what a security is, not legislation.

The head of the SEC made the comments shortly after his budget testimony at the Appropriations Subcommittee on Financial Service and General Government. Speaking to reporters, Gensler said he does not think the SEC requires the authority to define “what’s in or out.”

“I think there is one agency — the Securities and Exchange Commission, overseen by two committees — the House Financial Services and Senate Banking, and the courts that define what a security is and not individual crypto exchanges selecting that,” he added. 

Gensler’s comments sparked widespread reactions among crypto community stakeholders. Many believe his statement is part of the SEC’s efforts to continue its regulation by enforcement tactics against crypto firms.

Joining other crypto stakeholders to fault the SEC boss’ assertions, Garlinghouse said it is beyond comprehension for Gensler to claim that he dictates what constitutes security rather than the legislation from where the agency derives its power.

“When you behave like an autocrat running a $2.2B bloated agency, why would you ever want to provide clarity about what’s in or out?” Ripple CEO said.   

He stated that it is easy for ambiguity to masquerade as power when there is no clear jurisdiction.

Alderoty Fires Shot at the SEC

Meanwhile, Ripple’s General Counsel has not gone easy on the SEC and its head in recent times. As reported earlier, Alderoty described SEC’s invitation to crypto companies for registration purposes as a bait-and-switch trap.

He noted that Gensler knows there is no path to registration, as he would rather embrace enforcement actions to bully and bulldoze crypto companies. Furthermore, Alderoty said unelected bureaucrats like Gensler would succeed in pushing cryptocurrency innovations outside the United States.

“Unfortunately, unelected bureaucrats are pushing that innovation outside the US where the rules of the road are clear,” said Alderoty.