Ripple's general counsel, Stuart Alderoty, has highlighted the SEC's hypocrisy as he pointed out the commission's stance on untrue statements or omissions in registration statements.
Alderoty noted that the SEC issues stop orders blocking registration statements when they are untrue.
In the week gone by, the United States Securities and Exchange Commission (SEC) charged Coinbase with operating as an unregistered securities exchange, broker and clearing agency.
The SEC's complaint alleges that Coinbase has been unlawfully facilitating the buying and selling of crypto asset securities at least since 2019.
Alderoty drew attention to the SEC's inconsistencies by stating that the statement "I am not registering as a broker-dealer, a securities exchange, or an ATS because I am not trading securities" should have been blocked if the SEC believed it was untrue.
As reported, the top Ripple lawyer highlighted the SEC's bet on a strategy of shock and awe as it filed lawsuits against the two biggest exchanges, Binance and Coinbase. He added, "My money remains all in on the rule of law."
June 13: Important date
Later this week, the publicly redacted documents of former SEC official William Hinman as well as cross-motions for summary judgment in the Ripple lawsuit are expected to be made available on June 13. In a 2018 speech, Hinman declared Ethereum not to be security.
Expectations are growing as to what the Hinman documents may imply for the whole cryptocurrency sector as a result of the new lawsuits brought against Binance and Coinbase.
A vocal XRP community member who goes by the name "Mr. Huber" bares his expectations for the reveal of the Hinman documents.
He believes that the Hinman emails will be bad for crypto, but they will help Ripple. This will be because it will show that the SEC's entire crypto policy based on Hinman's speech was illegitimate, he stated.