Ripple legal officer says SEC’s enforcement action against crypto is a PR stunt

Stuart Alderoty slammed the SEC’s latest “enforcement action against Stoner Cats 2 LLC” and said that it was not more than a PR stunt.

Stuart Alderoty is Ripple’s chief legal officer. Ripple is a San Francisco headquartered blockchain firm which provides global payment services with the help of XRP coin. XRP coin runs on the Proof-of-stake (PoS) crypto network, XRP Ledger (XRL). Ripple Labs is the backend developer firm behind XRPL. Since Dec 2020, Ripple has been in a legal fight with the United States Securities and Exchange Commission (SEC) over the nature of XRP coin & Ripple’s past financial activities associated with XRP coin.

On 13 Sep 2023, The US SEC announced that the agency charged Stoner Cats 2 LLC (SC2) because they provided unregistered crypto securities offerings & raised $8 million in funding to fund an animated web series.

Today we charged Stoner Cats 2 LLC with conducting an unregistered offering of crypto asset securities in the form of purported non-fungible tokens (NFTs) that raised approximately $8 million from investors to finance an animated web series called Stoner Cats.
— U.S. Securities and Exchange Commission (@SECGov) September 13, 2023

SC2 agreed to a cease-and-desist order and to pay a civil penalty of $1 million. The order establishes a Fair Fund to return monies that injured investors paid to purchase the NFTs and also SC2 will destroy all the issues NFT.

Ripple chief legal officer Alderoty quoted this information and said that it was only a PR stunt by the SEC body, as they are blindly taking enforcement action against companies without proper rules & regulations.

According to the Ripple legal officer, SC2 agreed to settle the case blindly, to remain away from the legal hurdles only, otherwise, the situation would be different from, as recently Grayscale, Ripple like crypto companies secured regulatory win against the SEC’s charges.

Just recently Ripple CEO Brad Garlinghouse said in an interview that Ripple Labs is preparing itself to go as high as the Supreme Court to fight against the SEC’s blind enforcement actions because a judgment by the Supreme Court will help to end the case.