SEC Was “Dead Wrong” to Sue Ripple, Says Agency’s Former Chair

SEC Was

Former SEC Chair Mary Jo White has some harsh words for her colleagues

In a recent interview, American attorney Mary Jo White, who served as the chair of the U.S. Securities and Exchange Commission, said that the agency was “dead wrong” to sue blockchain giant Ripple back in December: 

There’s no way to sugarcoat it. They’re dead wrong legally and factually.

White slammed her colleague, Jay Clayton, for taking the company to court as his final act just days before stepping down from the SEC:     

As a former U.S. attorney and SEC chair, you know that when it takes that long to figure out a case you probably shouldn’t be bringing it. It’s not something I would do walking out the door.

Earlier this week, New York-based alternative investment manager Apollo Global Management appointed Clayton as its lead independent director.

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White is on Ripple’s payroll 

It’s not surprising that White—who has served as America’s leading financial regulator from 2013 to 2017—is mirroring Ripple’s talking points since she’s actually on its payroll. The fintech company hired her back in June 2018 together with Andrew Ceresney, the SEC’s former enforcement chief, to defend it in a private investor suit that deals with unregistered XRP sales. 

Ripple Labs, CEO Brad Garlinghouse, and former CEO Chris Larsen are represented by multiple former SEC lawyers in their legal fight against the agency, including Andrew Ceresney and Matthew Solomon.        

Unfortunately for Ripple, Gary Gensler, President Joe Biden’s pick to spearhead the agency, explicitly stated that XRP was a security in the past.     

The SEC has filed an amended suit 

The SEC filed an amended version of its landmark lawsuit against Ripple on Feb. 18, adding factual details about how its higher-ups manipulated the XRP market with the company’s sales and personally profited from selling the controversial token.             

The first preliminary conference in the case has been scheduled to happen on Feb. 22.

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