Ripple CLO: Court rules SEC's revocation of proxy advisory firm rule violates procedural law

According to TechFlow, Ripple Chief Legal Officer Stuart Alderoty tweeted that the court once again ruled against the SEC, this time because the SEC illegally revoked the rules of the proxy advisory firm without following the Administrative Procedure Act. The court pointed out that SEC Chairman Gary Gensler personally instructed this illegal behavior. The case is "National Association of Manufacturers v. SEC."

The case alleges that the SEC's 2020 rule never went into effect and was rescinded in November 2021. The rescission process began shortly after new SEC Chairman Gary Gensler took office. In June 2021, Chairman Gensler directed his team to reconsider the 2020 rule and suspended its implementation during that time. For more information, see the official SEC statement.