The respected Wall Street Journal (WSJ) has cleared space on its commentary pages for two articles highlighting the ongoing legal battle between Ripple (XRP) and the U.S. Securities and Exchange Commission (SEC).
Since 1889, the Wall Street Journal (WJS) has been considered a U.S. quality medium, and discussions held there reach an audience of millions internationally. Thus, the crypto industry is struck by the fact that the WJS prominently published guest commentaries twice in August, which address the topic of regulation of Bitcoin and Co. in general and the fate of Ripple (XRP) in particular. First to comment was the head of the US Securities and Exchange Commission Gary Gensler, who explains in his commentary why his agency should also be responsible for cryptocurrencies. He points to the SEC’s role as a consumer watchdog and chooses developments in the auto industry as a comparison. Whether vehicles run on gasoline or electricity, a seat belt should always protect the occupants, Gensler says.
With its case against Ripple (XRP) since December 2020, the SEC has filed the largest lawsuit to date against a company in the crypto industry. It wants to prove that investors were deliberately deceived and that Ripple needed SEC approval to sell XRP. Ripple sees it differently, of course, and so the WSJ also features Stu Alderoty as Ripple’s general counsel. In his commentary, Alderoty writes that the SEC wants to become the “crypto police of the U.S.” but is missing the realities. Gensler’s comparison to the automobile industry is misleading because e-cars no longer need gasoline and thus mark a new stage of development. Gensler and she SEC would act as if they themselves still sell gasoline and want to prosecute everyone who has already switched to e-cars, Alderoty said.
In general, hopes of the crypto industry that more regulatory openness on Bitcoin and co. could emerge in the U.S. with U.S. President Joe Biden have not been fulfilled. Biden’s predecessor Donald Trump had openly opposed cryptocurrencies and called for tough regulation. Biden did provide a new head at the SEC in Gary Gensler, but he also views cryptocurrencies with extreme skepticism and has pushed the SEC’s approach to this.
Conclusion: SEC against Ripple and XRP – no agreement in sight.
One may credit the WSJ with mapping the most important crypto process of recent years through comments by acting persons. In terms of content, however, the opponents do not deliver anything new; they cannot even respect the position of the other side as a basis for discussion. Thus, the two opinion pieces are probably to be interpreted as another piece of the mosaic in the prognosis that Ripple and the SEC will not settle out of court, but only a court ruling can end the bitterly fought conflict.