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November 2, 2023

Cryptocurrency Community Criticizes SEC and Gary Gensler for Hindering Innovation

Liam O'Sullivan
Written byLiam O'SullivanWriter
Researched byNikos PapadopoulosResearcher

Ripple's Chief Legal Officer (CLO), Stuart Alderoty, and members of the XRP community are openly criticizing the Securities and Exchange Commission (SEC) and its Chair, Gary Gensler. This comes in response to recent actions and decisions by the SEC that have negatively impacted the cryptocurrency industry.

Cryptocurrency Community Criticizes SEC and Gary Gensler for Hindering Innovation

In a show of solidarity, Ripple CLO Stuart Alderoty shared an opinion piece from the Wall Street Journal questioning Gary Gensler's ability to win legal cases. This follows a recent legal defeat for the SEC in the Fifth Circuit Court of Appeals, where the agency's stock-buyback rule was criticized.

The SEC has been accused of violating the Administrative Procedure Act (APA) by acting arbitrarily and capriciously. Grayscale, a prominent cryptocurrency investment firm, has argued that the SEC's denial of GBTC's conversion to a spot Bitcoin ETF is a violation of both the APA and the Exchange Act.

Coinbase's CLO, Paul Grewal, also joined in the criticism, highlighting a revelation by the Government Accountability Office (GAO) that the SEC's SAB 121 rule was drafted without input from regulators and the public, which is a violation of the APA and the Congressional Review Act.

Not only Ripple and Coinbase, but XRP lawyers John Deaton and Bill Morgan have also expressed their dissatisfaction with the SEC and Gary Gensler. Deaton called on the SEC Commissioners to act as leaders rather than political operatives, emphasizing that the SEC's credibility is at stake. He further requested the Financial Services Committee to issue a subpoena, criticizing their failure to do so while entrepreneurs are being targeted by the SEC.

Bill Morgan echoed these sentiments, stating that the SEC's actions are politically motivated and driven by an agenda. He believes that the SEC should stop bullying the crypto industry.

The criticism towards the SEC and Gary Gensler reflects the growing frustration within the cryptocurrency community regarding regulatory actions that are perceived as hindering innovation and growth. It highlights the need for clear and fair regulations that support the development of the crypto industry.

About the author
Liam O'Sullivan
Liam O'Sullivan
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Liam O'Sullivan, an Irish digital maestro, seamlessly fuses his impeccable command of English with an enthusiastic penchant for online gaming. Highly regarded for his localization expertise, Liam fine-tunes online casino guides, ensuring they resonate profoundly with the diverse English-speaking populace.

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