In a stinging critique of SEC chairman Gary Gensler, Ripple's top lawyer Stuart Alderoty compared the chairman to a flat-earther for his perceived inability to understand that the token is not a security.
In a tweet, Alderoty said, "Talking to someone who still doesn't understand that the token itself is not the security is like explaining to a flat earther that the world is round." The comment comes as the SEC signals its intent to appeal a recent landmark ruling in favor of Ripple.
Dorozhko redux: Lesson from history?
The debate around Ripple's legal battle with the SEC has stirred memories of a similar SEC appeal that was brought up by former SEC official John Reed Stark.
In 2007, Oleksandr Dorozhko allegedly hacked into an investor relations firm's secure computer network to access IMS Health's earnings information. Using this nonpublic information, Dorozhko purchased put options on IMS Health's common stock hours before the announcement of negative earnings.
The stock subsequently plummeted, and Dorozhko made a substantial profit. Initially, the court found Dorozhko's actions did not amount to a securities violation, the decision was later reversed on appeal. The question now is whether history may repeat itself in Ripple's case.
Following the Ripple verdict, Stark predicted that the San Francisco-based company was likely to lose the appeal.
Ripple CEO applauds congressional crypto champions
As reported by U.Today, Ripple CEO Brad Garlinghouse has been vocal about his disapproval of the SEC's approach to cryptocurrency regulation. Following the SEC's decision to appeal the recent ruling in favor of Ripple, Garlinghouse criticized the regulatory body for what he views as overstepping its legal jurisdiction. His comments echo those of Congressional members such as Ritchie Torres and Patrick McHenry, who have advocated for clearer legislation rather than "regulation by enforcement" in the crypto industry.