Ripple Vs SEC Conflict Is Getting Fierce, Gary Gensler Is Criticized

XRP supporters criticized SEC chairman Gary Gensler's statement. (Photo; Doc. Techstory)

JAKARTA - The conflict between Ripple Labs and the US Securities and Exchange Commission (SEC) is heating up. Not long ago, SEC Chairman Gary Gensler delivered a speech that was considered attacking the crypto industry, including Ripple. However, Ripple did not remain silent and made sharp replies through social media.

Ripple Labs is a company that develops a crypto-based cross-border payment protocol, which uses XRP as its medium of exchange. The SEC accused Ripple of violating securities laws by selling XRP without permission. The case is still ongoing in court and is expected to be completed in February next year.

Meanwhile, Gensler recently addressed and quoted the statement by the first SEC chairman, Joseph P. Kennedy, as a reference for SEC's ethical behavior as the government's financial market supervisory body. Gensler said:

"We are not honest business prosecutors, nor are we fraudulent business defenders. We are honest business partners & volatile prosecutors. We will not be prejudiced, but we will investigate."

This statement drew negative reactions from crypto activists, including Ripple's Chief Legal Officer, Stuart Alderoty, who criticized Gensler on social media platform X. Alderoty accused Gensler of lying and being hypocritical by providing several examples of the SEC's failure and fraud in handling crypto cases, particularly Ripple.

Alderoty also highlighted Hinman's document, which is a letter from former SEC director of the corporate division, William Hinman, stating that Ethereum is not considered a security. This document is one of the main evidences filed by Ripple to defend itself against SEC allegations.

Alderoty wrote: "Checking facts related to Gensler's recent statements. He assessed that Ripple has been sued by the SEC, but has never been charged with allegations of fraud. Furthermore, Alderoty assessed that the SEC's indictment was solely based on prejudice initiated by Bill Hinman, a former SEC official.

"Gensler has been prejudiced against crypto and has filed charges against others without investigation," he added.

The fight between Ripple and the SEC has also attracted the attention of other crypto figures, such as Bitcoin Foundation Chair Brock Pierce, who appeared on Fox Business events to defend Ripple and criticize the SEC.