Ripple Pioneer Returns to SEC Case After Spotting Familiar Tactics Outside Crypto

One of the pioneers of the crypto industry, $XRP Ledger co-creator and current Ripple CTO Emeritus David Schwartz, has once again returned to the topic of the iconic legal battle with the SEC.

The reason for this was events far beyond digital assets: the executive discovered an exact replica of the methods used by the U.S. Securities and Exchange Commission in a dispute unfolding entirely outside crypto.

The parallel emerged thanks to case materials published by American attorney Kostas Moros. In this legal dispute, a major private manufacturer is challenging Connecticut state legislation restricting the sale of certain categories of products.

The business argues that the state’s attorney general’s office is deliberately refusing to clarify the criteria for determining the legality of its updated product lines, thereby creating conditions that are impossible for the company to meet.

Why Ripple pioneer believes the rules are deliberately made impossible to follow

One of Ripple’s key creators drew a parallel between this case and his company’s years of experience, calling the authorities’ actions “grossly unfair” in a post on X. According to Schwartz, the government’s deliberate strategy in this case is to force businesses to play by rules under which “you cannot possibly know whether you are complying with the law.” The executive added a sarcastic “Ask me how I know” to his critical post.

When followers asked how the crypto veteran had gained such deep knowledge of government agencies’ tactics, Schwartz responded with a brief “A little birdie told me,” attaching a link to Investopedia’s analysis of the SEC v. Ripple case.

As a reminder, during its legal battle with the SEC, Ripple defended itself against allegations of selling more than $1.3 billion worth of unregistered securities through the $XRP token. One of the defense’s key arguments was precisely the regulator’s failure to provide clear and transparent rules.

The fact that the Ripple pioneer has returned to this topic through an unrelated legal dispute confirms that, for the company’s top management, the years-long battle with the Commission remains a key precedent in the defense of private businesses against the tactic of “regulation by enforcement.”