Ripple Labs and the SEC are in discovery for the remedies phase of the Ripple case until February.
Meanwhile, Gary Gensler recently gave a speech in which he quoted the first SEC chair, Joseph P. Kennedy. That’s what started the X skirmish between the Commission and members of the crypto industry.
Gary Gensler’s SEC Remarks Irk Ripple Labs
In his speech, Gensler touted the original SEC chair’s words as a model for the agency’s ethical behavior as a government regulatory agency.
“We are not prosecutors of honest business, nor defenders of crookedness. We are partners of honest business & prosecutors of dishonesty. We shall not prejudge, but we shall investigate.”
As Joseph P. Kennedy, the first @SECGov Chair, once said: “We are not prosecutors of honest business, nor defenders of crookedness. We are partners of honest business & prosecutors of dishonesty. We shall not prejudge, but we shall investigate.”
Check out my recent remarks: pic.twitter.com/QM2zqj8PQs
— Gary Gensler (@GaryGensler) November 16, 2023
Ripple’s legal chief, Stuart Alderoty, balked in response and went after Gensler’s SEC. The Ripple Labs attorney had a litany of counterexamples to Gensler’s speech:
“The SEC is losing in court; being criticized by Judges for shady behavior; being rebuked by the Gov’t’s internal auditor; hiding info about meetings with a felon; becoming irrelevant on the international stage[…]”
The SEC is losing in court; being criticized by Judges for shady behavior; being rebuked by the Gov’t’s internal auditor; hiding info about meetings with a felon; becoming irrelevant on the international stage. Gensler – admitting no fault – has become the insulate Col. Jessep. pic.twitter.com/vqjPPcifr8
— Stuart Alderoty (@s_alderoty) November 16, 2023
But Alderoty didn’t stop there. He also brought up the Hinman documents, which could remain a thorn in the SEC’s side as it prosecutes Ripple and a number of cryptocurrency exchanges and custodians.
Alderoty Raises Specter of Hinman Documents
After recapping how the SEC has fallen foul of federal auditors and judges, Alderoty pointed to the Hinman documents as another counter example to Gensler’s claim that the SEC acts honorably:
“Fact check Gensler’s recent remarks. Ripple was sued, but never charged with ‘dishonesty.’ The failed case against it was prejudged, beginning with the ethically compromised Bill Hinman.”
“Gensler has prejudged crypto and has filed suit against others w/o investigation,” Alderoty added.
Fact check Gensler’s recent remarks. Ripple was sued, but never charged with “dishonesty.” The failed case against it was prejudged, beginning with the ethically compromised Bill Hinman. Gensler has prejudged crypto and has filed suit against others w/o investigation. https://t.co/Th9I8Or4QC
— Stuart Alderoty (@s_alderoty) November 17, 2023
Back in July, Bitcoin Foundation Chairman Brock Pierce went on Fox Business’s “Cavuto: Coast to Coast” to explain why the SEC is losing its lawsuit against Ripple.
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