The Court is Working Hard to Resolve the SEC Vs. Ripple XRP Issue Resolution in 2023

Stuart Alderoty:  To all that have been following the case thus far – thank you. Know that Ripple is pushing hard (and the Court is working hard) to resolve the case as soon as possible, despite the SEC time and again doing everything they can to delay.

Ripple XRP Parties file joint scheduling letter proposing opening briefs for summary judgment and expert challenges in August and closing briefs a few days before Christmas.

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.

Chair Gensler preaches “justice delayed is justice denied” when firms defend themselves from SEC bullying investigations / inquiries – quite the contrast from the SEC using every tactic at their disposal to keep this cloud of uncertainty over the market. Justice delayed indeed.

The Biden EO estimated that 40M Americans own crypto today – no thanks to the SEC who insist on saying that all – or most tokens – are securities, and that US exchanges are running unlawful security exchanges. If you ask which ones? No comment. No disclosure.

Gensler refuses to offer any specifics whatsoever, and the SEC hasn’t sought to shut down any exchange b/c they know they don’t have any real jurisdiction over this $2T industry. In the meantime though – they’ll leverage every tactic to create market confusion.

Already, we’re seeing a massive transfer of crypto talent, tech and wealth moving offshore to jurisdictions with rational regulatory frameworks. Entrepreneurs are being advised to not start their projects in the US. How long can this be allowed to continue?

And to those asking if this is a joint filing – yes it is. But, based on the SEC’s track record, if we didn’t agree to this, the next iteration would have very likely been even longer.

In response Brad Garlinghouse:  Over the past couple of years, I’ve found myself becoming far more familiar with the SEC than I ever thought possible. Which is why it’s beyond ironic that one of their goals is to provide “disclosure” – guess they don’t need to abide by their own rules.

The SEC seems perfectly content to let the US fall further behind – all in the name of protecting their own jurisdiction at the expense of US citizens. Politics over policy is good for no one. We need a clear regulatory framework now.