XRP Lawsuit: Ripple’s General Counsel Says SEC’s Case Against XRP Is A Rug Pull

April 25, 2022 9:46 pm

The SEC vs Ripple lawsuit recently made some progress over the last week as both parties have now aligned on the schedule for the summary judgement which is December 20 of this year.

This scheduled date is considered the scenario that is most delayed and a possible settlement between both parties remains an optimistic scenario that XRP holders are hoping for.

With that being said, Ripple’s General Counsel, Stuart Alderoty, has made a bold claim that this entire lawsuit against XRP was essentially a rug pull that targets XRP investors.

As the case gets closer to the two year mark, Alderoty accused SEC chair Gary Gensler of stifling crypto innovation within the country, slowing the country’s ability to become a crypto hub, and making claims that have no substance behind them.

TheCryptoBasic reports:

“To all that have been following the case thus far – thank you… It now looks like a resolution will happen in 2023, and each day that passes is hurting US citizens who were essentially the victims of a rug pull by the SEC,” Alderoty wrote on Twitter.

Many XRP investors would hope that Alderoty is right and the case would be genuinely over in 2023.

Alderoty also said the SEC’s lack of proof against tokens being securities or oversight functions over the crypto industry (now valued as a $2 trillion industry) is why they can’t shut down on crypto exchange. Hence, they are always using any means to confuse market players.

Alderoty further explained that Ripple agreed to the December 20 briefing date to prevent the SEC from additionally having any grounds to prolong the case.

As many within the community have already observed, Alderoty has stated that the SEC is continuing with their usual delay tactics which might force the case to continue until next year.

The price of XRP has been severely impacted by the lawsuit, but has still been able to maintain high demand due to XRP’s impressive growth in other areas of the world.

If the lawsuit does end in Ripple’s favor, analysts expect the relisting of XRP on major US crypto exchanges will bring a huge amount of investors back into XRP and kickstart a bullish rally.

Still, the major concern that Alderoty has is that a lot of crypto talent may have already left for other regions by that time which harms the crypto industry in general within the US.

FinanceFeeds reports:

His statement includes criticism toward the SEC, Chair Gary Gensler, and a warning that crypto talent, tech, and wealth is moving offshore to safer jurisdictions.

Alderoty ended by explaining that, while Ripple agreed to the briefing schedule, if it didn’t the SEC would likely cause even longer delays to the case.

It now looks like a resolution will come in 2023 – and each day that passes is hurting US citizens who were essentially the victims of a rug pull by the SEC. $15B in XRP market cap was destroyed the day the suit was filed, hurting the very people the SEC purports to protect.

In Dec 2020 (as Clayton & Hinman packed their bags), the SEC didn’t seek a Court injunction to stop XRP trading in the US when they filed the suit because they knew they couldn’t get one. Effectively, the case has done so anyway – prime example of regulation by enforcement.

A lot is at stake and winning this lawsuit will be key in order to prevent the SEC from continuing to do rug pulls on the rest of the crypto industry.

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