SEC’s Legal Defeats Stockpile Concerning: Ripple Legal Chief

cryptonews.com:

A growing stockpile of legal defeats suffered by the US Securities and Exchange Commission (SEC) has garnered widespread attention. One notable observer is Ripple’s Chief Legal Officer Stuart Alderoty, who has expressed concern over this trend.

In a recent tweet on X (formerly Twitter), Alderoty stated that the trend is becoming worrisome, particularly during SEC boss Gary Gensler’s tenure.

According to Alderoty, these defeats are “deeply concerning” and point to a possible overreach by the SEC beyond its established legal responsibilities.

The chief litigant to the blockchain protocol also noted that the SEC appears to be departing from its legal obligations since Gensler assumed leadership.

Another day and another Court finds that the SEC again acted arbitrarily and capriciously. Is anyone else concerned about this very troubling pattern of the SEC flouting any faithful allegiance to law under Mr. Gensler? https://t.co/5bUgSBUOI8

— Stuart Alderoty (@s_alderoty) November 1, 2023

Alderoty’s comments were prompted by recent reports that the SEC’s stock buyback rule was overturned by the Fifth Circuit of Appeals in an October 31 judgment read out by Judge Jerry E. Smith.

In their remarks, Judge Smith and his fellow judges Higginson and Southwick stated that the SEC’s recent rule lacked enough plausible merits, and the agency had acted arbitrarily and capriciously by failing to conduct a proper cost-benefit analysis.

In addition, the court also ruled that the SEC disclosure requirement directly violates the First Amendment and denied the defendants a meaningful opportunity to contribute to the case’s resolution.

However, the court has granted the SEC an opportunity to address these issues and substantiate its decision-making