Ripple continues to battle the United States Securities and Exchange Commission (SEC) and it seems the blockchain company now has the support of former SEC Chair Mary Jo White, who is defending Ripple and its CEOs in the suits. While states that the commission she once led is “dead wrong” in this case.
Speaking at an interview with the Fortune Magazine, White who served as the 31st SEC chair from 2013-2017 highlighted the various problems with the ongoing Ripple lawsuit. “There’s no way to sugarcoat it. They’re dead wrong legally and factually,” she said.
Firstly she pointed out the odd timing of the lawsuit and the lengthy investigation the preceded it. White stressed that the case was filed when several senior SEC officials were at the end of their term, including former chair Jay Clayton. However, the allegations in the suit are dating back to 2012.
“As a former U.S. attorney and SEC chair, you know that when it takes that long to figure out a case you probably shouldn’t be bringing it. It’s not something I would do walking out the door.”
White discussed the lack of regulatory clarity for the cryptocurrency industry, adding that it detracts from the legitimacy of the SEC’s case against Ripple. She claimed that the lawsuit is arbitrary, citing the SEC’s decision to declare Bitcoin and Ethereum as ‘not security’.
Last month, in its response to the regulator’s complaint, Ripple had filed for a Freedom of Information Act request for documents from the SEC that states how the agency determined that bitcoin and ether, are not securities.
After defending Ripple, White concluded that the primary victims of this $1.3 billion lawsuit are the investors, which the SEC seeks to protect, as “$15 billion in market cap was lost.” She added that the SEC is running out of resources when it comes to regulating the financial system. Meanwhile, the crypto industry is in need of clear regulations, and this should be one of the agency’s top priorities.
“You have scarce resources [as chair], and you have to pick your spots. The crypto-landscape is a critical one, and there’s a crying need for clarity.”
As previously reported by The Daily Chain, the SEC’s amended complaint against Ripple and its executives CEO Brad Garlinghouse, and ex-CEO Chris Larsen, accuses them of playing a “significant role” in executing Ripple’s unregistered sales of the XRP cryptocurrency.