Elon Musk Slams SEC, Ripple CEO Agrees
2024-12-14
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Elon Musk has criticized the U.S. SEC for being a “weaponized institution" in a recent post on X.
The SEC is just another weaponized institution doing political dirty work https://t.co/5w9ajcS6bf
Both Ripple CEO Brad Garlinghouse and Ripple CTO David Schwartz reacted to Musk’s post.
What he said 👇 https://t.co/sHs1aLkf8Z
👍 https://t.co/LIVaB2xkrj
Musk’s critique comes after the news that the Fifth Circuit en banc, in an opinion by Judge Andrew Oldham, holds that the SEC acted unlawfully in approving a Nasdaq policy that forces corporate boards to implement an identity-based diversity quota.
According to the judge, SEC's legal authority is to ensure a fair and honest marketplace and not to force politically motivated identity politics into corporate decision making.
Recently, the U.S. Supreme Court has rejected the legal team of the U.S. Security and Exchange Commission's request to impose sanctions on Musk for failing to appear at the court-ordered testimony.
After announcing the establishment of DOGE (The Department of Government Efficiency), Musk, also known as “the Dogefather,” has already expressed his disregard for the SEC.
As a government official, Musk plans to reduce the federal budget by $2 trillion, or 30%. To do so, he has proposed a return-to-office mandate for government workers, suggesting cutting entire agencies.
Ripple is back on track
On Tuesday, the RLUSD stablecoin officially obtained approval from the New York State Department of Financial Services (NYDFS).
Ripple will be authorized to offer RLUSD to the public, marking a significant step into New York's regulated digital finance market and strengthening its position within the stablecoin ecosystem. RLUSD will provide a U.S.-regulated alternative to Tether’s $130 billion USDT, which dominates the stablecoin market.
Ripple's move comes amid increased competition, with companies like PayPal also developing stablecoins to capitalize on this lucrative sector.
The U.S. Court of Appeals for the Second Circuit has directed the SEC to file its last arguments by Jan. 15, after which the court will assess motions to either dismiss or proceed with portions of the case.
The SEC filed suit against Ripple in December 2020, alleging that Ripple’s sale of XRP constituted an unregistered securities offering.
Ripple, however, contends that XRP should be classified as a digital currency, not a security. This classification is crucial, as a ruling against Ripple could set a regulatory precedent for other cryptocurrencies, potentially reshaping the legal environment for the entire crypto sector.