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Former SEC Lawyer Claims Agency's Not Turning Back from Lawsuit Against Ripple

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Wed, 05/05/2021 - 05:20
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Alex Dovbnya
Former SEC lawyer Linda Jeng says she's disappointed by the agency's lawsuit against Ripple
Former SEC Lawyer Claims Agency's Not Turning Back from Lawsuit Against Ripple
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Georgetown Law professor Linda Jeng, who was part of the U.S. Securities and Exchange Commission’s trading and markets division from 2008 to 2009, told Roll Call that it was too late for the agency to back down from its legal fight with distributed ledger tech provider Ripple: 

I think the SEC has already headed down this path and they’re not turning back.

Jeng, however, is “disappointed” by the fact that the agency took the company to court after many years since the introduction of the product, channeling the defense’s argument. She believes that it’s taking a toll on the regulator’s credibility.

She further states that former SEC chairman Jay Clayton bringing an enforcement action as his final act before leaving the agency made the decision seem political.           

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SEC Says XRP Holders Are Compelling It to Bring Enforcement Action Against Them

Discovery battles

While Ripple signaled that it would give its settlement talks another try with the new administration, Gary Gensler’s SEC is evidently pushing ahead with the lawsuit.

The two parties are currently engaged in nasty discovery fights. Ripple is asking the court to prevent the SEC from sending memorandum of understanding (MoU) requests to foreign regulators while the agency is seeking to bar the defendants from accessing its internal staff communications.

Meanwhile, Magistrate Judge has granted the SEC’s motion to file a single opposition brief to CEO Brad Garlinghouse’s and co-founder Chris Larsen’s twin motions to dismiss the lawsuit.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.