It becomes clearer that Ripple would not resort to signing settlement papers with the United States Securities and Exchange Commission (SEC) regarding the two-year-long XRP lawsuit.
The ‘no settlement’ topic in the ongoing XRP lawsuit resurfaced on Thursday when Bill Morgan, a pro-XRP lawyer reacted to the recent shots fired by Ripple’s CEO and Chief Legal Counsel at the SEC Chairman Gary Gensler. But John Deaton believes a settlement could only come after Summary Judgment from Judge Torres.
According to Morgan, the latest criticisms poured on SEC and Gensler by Brad Garlinghouse and Stuart Alderory indicate that the longstanding XRP lawsuit would only end through a court ruling.
“I guess you [Brad Garlinghouse] and Stuart Alderoty hammering the SEC and Gensler in recent tweets means you are not about to sign a settlement agreement, in which case hammer away,” he wrote.
Ripple Executives Message to SEC Chair
In recent tweets, Garlinghouse and Alderoty joined the list of several top industry players that blasted the United States securities watchdog following some controversial statements made by the SEC Chair lately.
According to Gensler, the SEC does not require any authority to define what constitutes a security or not. “I think there is one agency — the Securities and Exchange Commission, overseen by two committees — the House Financial Services and Senate Banking, and the courts that define what a security is and not individual crypto exchanges selecting that,” he said while addressing reporters.
Notably, Gensler made these assertions after his latest budget testimony at the Appropriations Subcommittee on Financial Service and General Government. Of course, crypto stakeholders didn’t take this lightly.
Ripple CEO Brad Garlinghouse reacted by saying:
“For the Chair of the SEC to assert that he dictates what is a security – and not the legislation from which his agency derives its power – is beyond comprehension. It’s time for elected officials in the US to take notice. When you behave like an autocrat running a $2.2B bloated agency, why would you ever want to provide clarity about what’s “in or out”? Without clear jurisdiction, ambiguity masquerades as power.”
On the other hand, Alderoty stated that the SEC is overreaching its jurisdiction, adding that the agency’s decision to achieve regulations by enforcement would take innovation away from the United States. “Unfortunately, unelected bureaucrats are pushing that innovation outside the US where the rules of the road are clear,” he remarked.
As published, Coinbase CEO shared the same thoughts regarding the SEC’s attack on crypto projects including Coinbase and XRP. However, the summary judgment in the Ripple-SEC case is expected in the coming months according to Garlinghouse and John Deaton.
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