Elon Musk criticized the US SEC for being an “armed institution” in a recent post on X
The SEC is just another armed institution doing dirty political work https://t.co/5w9ajcS6bf
– Elon Musk (@elonmusk) December 12, 2024
Both Ripple CEO Brad Garlinghouse and Ripple CTO David Schwartz reacted to Musk’s post.
What he said 👇 https://t.co/sHs1aLkf8Z
– Brad Garlinghouse (@bgarlinghouse) December 13, 2024
👍 https://t.co/LIVaB2xkrj
— David “JoelKatz” Schwartz (@JoelKatz) December 12, 2024
Musk’s criticism comes after news that the full Fifth Circuit, in an opinion by Judge Andrew Oldham, holds that the SEC acted illegally by approving a Nasdaq policy requiring corporate boards to implement a diversity quota based on in identity.
According to the judge, the SEC’s legal authority is to ensure a fair and honest market and not to impose politically motivated identity politics on corporate decision-making. Link to the full decision in the comments.
Recently, the US Supreme Court rejected the request by the US Securities and Exchange Commission’s legal team to impose sanctions on Musk for failing to appear for court-ordered testimony.
After announcing the creation of DOGE (The Department of Government Efficiency), Musk, also known as “the Dogefather”, has already expressed his disdain for the SEC.
As a government official, Musk plans to reduce the federal budget by $2 trillion, or 30%. To that end, he has proposed a return mandate for government workers, suggesting cutting entire agencies.
Ripple is back on track
On Tuesday, the RLUSD stablecoin officially gained 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 towards the New York regulated digital financial market and strengthening its position within the stablecoin ecosystem. RLUSD will provide a US-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 ordered the SEC to file its final arguments by Jan. 15, after which the court will consider motions to dismiss or continue parts of the case.
The SEC filed a lawsuit against Ripple in December 2020, alleging that Ripple’s sale of XRP constituted an unregistered securities offering.
Ripple, however, maintains 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.
