SEC Accused of Hypocrisy and Favoritism in Crypto Crackdowns – Coinpedia Fintech News

  • Stuart Alderoty has criticized the SEC’s approach to crypto matters.

  • A federal judge in the Debt Box case scolded the SEC for misleading actions, alleging that the agency presented false data.

  • John Deaton, an XRP holder, also criticized the SEC’s conduct in crypto cases.

The legal battles between the SEC and various crypto entities continues to take nasty turns on the daily, and there’s no sign of a resolution anytime soon. Now, Stuart Alderoty, Ripple’s legal expert, has decided to boldly speak out. His criticisms resemble a courtroom drama, where judges have questioned the SEC’s approach to crypto matters.

Facing a backlash, the SEC is accused of protecting certain figures while showing favoritism towards Ethereum gateways.

How much truth is really in these accusations? Let’s discover it together.

Alderoty’s Insights

Stuart Alderoty, Ripple’s legal powerhouse, took to social media to expose what he sees as issues within the U.S. Securities and Exchange Commission (SEC). In his posts, Alderoty breaks down instances where the SEC faced criticism for its actions in the crypto world.

In the SEC v. Ripple case, the court accused the SEC of hypocrisy and ignoring legal principles. Similar criticisms occurred in cases involving major players like Coinbase, Grayscale, and the recent drama with Debt Box. The SEC was even ordered to explain misleading actions, catching the eye of billionaire Mark Cuban.

Also Read: Federal Judge Warns SEC of Potential Sanctions in Cryptocurrency Fraud Case

What’s the Debt Box Drama?!

A federal judge overseeing the Debt Box case scolded the SEC for misleading actions. Allegedly presenting false data, the SEC froze millions in assets, causing substantial harm to Debt Box. The judge demanded an explanation and considered sanctions against the SEC.

The burning question is: Why is a regulatory body handling risk assets so unprofessional? Is it political pressure, or is there internal turmoil within the agency?

Alderoty’s critique extends beyond recent events, highlighting the Supreme Court’s disapproval of the SEC. He questions the SEC’s timing in the Kraken lawsuit and challenges the use of the term “crypto asset securities,” seeing it as lacking legal grounding. His posts reveal frustration with the SEC’s strategies and its struggle to adapt to the changing crypto landscape.

Read More: Is the SEC Playing Favorites with Bitcoin and Ethereum?

John Deaton’s Call to Action

John Deaton echoes Alderoty’s concerns about the SEC’s conduct in crypto cases. He emphasizes a federal judge considering sanctions against the SEC for allegedly misleading the court.

Deaton criticizes SEC lawyers for their handling of cases, urging congressional oversight to rein in what he sees as an unchecked SEC. As the legal drama unfolds, the spotlight intensifies on the SEC’s crypto challenges, inviting both skepticism and scrutiny.

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