Ripple’s top lawyer is urging Hester Peirce, commissioner of the US Securities and Exchange Commission (SEC), to speak out sooner and louder against the regulator’s hostile approach towards the crypto industry.
Last week, Peirce released a dissenting statement on the SEC’s lawsuit against blockchain-based file sharing payment network LBRY, which the regulator filed in 2021 amid allegations that the company sold crypto assets as unregistered securities .
Commenting on Peirce’s statement, Ripple’s lead attorney Stuart Alderoty said asks the commissioner whether it might be time for her to file an amicus brief in defense of LBRY or other cases in the crypto industry.
“Thank you, Commissioner. When you see these kinds of injustices continuing in non-fraud cases (while consumers wait for redress for actual fraud), perhaps it’s time to put aside the usual rules of protocol and speak louder and sooner? Maybe even with an amicus brief?’
Pro-XRP attorney John Deaton, who represented 75,000 XRP holders during his amicus curiae in the SEC’s lawsuit against Ripple, also responded to Peirce: echo Alderoty’s feelings.
“Deviations and open criticism letters are great and appreciated. Sure, better than nothing.
But maybe it’s time to get off the sidelines and take the extra step and file an amicus brief. As you know, 75,000 individual holders made their voices heard in court. I think it’s time for someone from within to speak out – in court.”
In Peirce’s recent dissent to the SEC, the commissioner questioned why the regulator went after LBRY — a company that appeared to be causing no observable harm to anyone — instead of going after other companies that were actually involved in outright fraud.
“Why go after a company that sold a token for a functioning blockchain with an established use, when we could have pursued numerous other projects that were outright fraud and did not attempt to comply with securities laws? To make matters worse, the Commission has taken an extremely harsh approach in this case.
For example, after winning summary judgment, the Commission sought monetary damages of $44 million, claiming that LBRY’s offer to burn all tokens in its possession was not a sufficient guarantee that LBRY would not violate the registration provisions in the future . The measures requested by the Commission were completely disproportionate to the possible damage.”
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