Ripple and Elon Musk Highlight SEC’s Legal Missteps Under Gensler
The United States Securities and Exchange Commission (SEC), under outgoing Chair Gary Gensler, has faced backlash across various sectors; the latest as and when, the agency demanded a monetary settlement from Tesla CEO Elon Musk to avoid legal action.
Vivek Ramaswamy, one of the earlier Presidential candidates, criticized the SEC on X (formerly Twitter), accusing the agency of undermining the rule of law.
He argued that the SEC often “contorts its rules in unconstitutional ways,” leading to multiple legal defeats and eroding public trust.
Ripple and Other Critics Take Aim at the SEC
Canadian-American venture capitalist Chamath Palihapitiya emphasized that partisan regulators misuse their authority to target individuals they oppose.
According to him, these tactics disproportionately affect those without the resources of figures like Musk.
Holding the SEC Accountable
Ripple’s chief legal officer Stuart Alderoty reiterated these sentiments, calling Gensler’s SEC “rogue.” In Ripple’s lawsuit, a U.S. court observed that the SEC appeared to prioritize its goals over adherence to the law.
Alderoty urged the public to hold the agency accountable and proposed a discussion with Ramaswamy to address these concerns.
The chief legal officer at American fintech firm Ripple, Stuart Alderoty, said in an X post that Ripple was the first to highlight the SEC’s tactics against crypto and other sectors.
In a lawsuit against Ripple, the court stated that the SEC “is adopting its litigation positions to further its desired goal, not out of a faithful allegiance to the law.”
Alderoty called the SEC under Gensler “rogue” while adding that it is very important to hold the regulator accountable.
In order to do so, Alderoty proposed a discussion with Ramaswamy, who has yet to confirm the same. Also, much to the crypto sector’s relief, president-elect Donald Trump announced the new SEC Chair, Paul Atkins who will replace Gensler.
