Ripple’s Stuart Alderoty Exposes SEC’s Bias: Are They Playing Favorites?

Ripple’s lead attorney, Stuart Alderoty, recently took to Twitter to shed light on what he perceives as the Securities and Exchange Commission’s (SEC) potential lack of impartiality. Alderoty has called into question the agency’s conduct, emphasizing the obligation of its employees to act objectively and whether their impartiality can withstand scrutiny when armed with the facts.

Is the SEC biased? Let’s explore. 

Reviewing The Impartiality Clause

Alderoty’s argument revolves around the significance of federal regulation 5 CFR 2635.101(b)(14), which outlines the responsibility of public service workers, including SEC employees, to maintain objectivity. According to this regulation, every federal employee has a duty to prioritize the constitution, laws, and ethical principles over private interests, in service of the United States government and its citizens. This duty necessitates adherence to a set of ethical conduct principles.

These principles explicitly forbid employees from holding financial interests that conflict with their duty and require them to demonstrate unwavering commitment in fulfilling their roles. The regulation also prohibits the misuse of public office for private gain and underscores the importance of impartiality, disallowing any favoritism towards private organizations or individuals.

Also Read: Ripple News: John Deaton Backs Ripple Execs, Slams SEC For Being A “Bully” – Coinpedia Fintech News

Furthermore, the regulations stipulate that federal employees should refrain from engaging in outside employment or activities that may clash with their official government duties and responsibilities. They are also obligated to report instances of waste, fraud, abuse, and corruption to the appropriate authorities.

Alderoty Slams SEC’s Treatment Of Ripple

In his Twitter post, Alderoty seems to question whether the SEC’s treatment of Ripple and its digital currency, XRP, aligns with these obligations, particularly in comparison to its handling of other digital assets. The crucial query that arises is whether an impartial observer, armed with the knowledge of the SEC’s actions, would find cause to doubt the regulator’s neutrality. Although Alderoty has not directly accused the SEC of partiality, his comments suggest that he believes there are legitimate grounds to question the agency’s handling of Ripple’s case.