Author: Content Editor
The U.S. Securities and Exchange Commission (SEC) has faced criticism for missing a deadline in its appeal against Ripple Labs. The delay in filing the Form C in the XRP lawsuit has raised questions about the SEC's internal operations and regulatory enforcement approach. John Deaton's law firm, CryptoLaw, accused the SEC of consistently failing to adhere to legal protocols under SEC Chair Gary Gensler's leadership. They also highlighted a July 2023 ruling that concluded XRP is not a security. The SEC's failure to appeal this ruling and its expression of regret over the use of the term "crypto asset securities" in other communications has led some to believe that the agency is facing internal challenges. Furthermore, Magistrate Judge Sarah Netburn criticized the SEC for inconsistent arguments and lack of transparency, and accused them of "hypocrisy" and failing to show "faithful allegiance to the law." The timing of SEC Enforcement Director Gurbir Grewal's resignation, coinciding with the notice of appeal in the Ripple case, has fueled speculation about internal disarray within the agency. Despite reassurances that the appeal is proceeding normally, the SEC's credibility continues to be challenged. Ripple CEO Brad Garlinghouse voiced his frustration with the SEC's handling of the appeal.