Ripple CLO Spotlights SEC’s Setback In Proxy Advisory Firms Rule

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As an experienced financial analyst, I’ve been closely following the developments in the crypto space, particularly with regard to Ripple and its ongoing legal battle with the SEC. The recent statements made by Ripple CLO Stuart Alderoty regarding the SEC’s handling of the proxy advisory firms’ rule have caught my attention.

Stuart Alderoty, Ripple‘s Chief Legal Officer, has recently highlighted on X the SEC’s loss in another legal dispute, bringing attention to the unlawful revocation of a rule regarding proxy advisory firms. In his June 27 post, Alderoty criticizes the SEC for not following the Administrative Procedure Act in this matter. This revelation emerges against the backdrop of the ongoing legal conflict between the National Association of Manufacturers and the SEC. Let’s delve deeper into this ongoing controversy.

Alderoty Slams SEC?

Based on Alderoty’s article, the SEC failed to enact the 2020 rule regarding the SEC’s proposed modifications to the proxy voting guidance for proxy advisory services. The 2020 rule aimed to require these firms to adhere to certain notification and awareness conditions prior to delivering voting recommendations to shareholders or investors.

Despite the rule being passed in 2020, it didn’t get enforced due to actions taken by Gary Gensler. Firstly, he requested a review of the rule in June 2021, leading to its temporary suspension. Later, in November 2021, an economic recession occurred, compelling the SEC to abandon the rule altogether. Consequently, the events that unfolded prevented the implementation of the 2020 Rule.

With respect to this issue, the Chief Legal Officer of Ripple expresses concern over the SEC’s management of significant affairs in the United States. Moreover, there is much discussion among crypto enthusiasts regarding the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission concerning XRP.

The regulatory body’s failures in other legal battles glimmer hope for Ripple’s ongoing lawsuit.

What’s Going On With The Ripple Community?

Recently, Ripple has generated significant buzz in the crypto community with its latest initiatives. Monica Long, the firm’s president, discussed various topics including the ongoing Ripple vs. SEC lawsuit, payment solutions, RLUSD stablecoin, and potential XRP Exchange-Traded Fund (ETF), capturing industry-wide interest.

However, the Ripple-backed token, XRP, continued to trade sluggishly at $0.4719 today.

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2024-06-27 15:58