Key Takeaways -
- The U.S. GAO has categorized SAB 121 as a "rule," suggesting the SEC may have violated federal law by not complying with required procedures.
- SAB 121 has significantly hindered innovation and progress within the crypto industry, with the SEC implementing the bulletin without congressional approval.
- Voices from the industry, including John E. Deaton and Stuart Alderoty, are raising concerns about the SEC's actions, potentially leading to a lawsuit and increased scrutiny of the agency.
The U.S. Securities and Exchange Commission (SEC) is currently navigating through turbulent waters, facing serious allegations of corruption and breaches of protocol. This article aims to dissect the situation, providing a clear and comprehensive analysis.
A Glimpse into the Controversy
The financial landscape is witnessing a significant shakeup as the SEC finds itself under scrutiny. Central to this controversy are the actions and evaluations of the U.S. Government Accountability Office (US GAO) and John E. Deaton, a pro-XRP attorney. Their roles are crucial in unraveling the complexities of this issue.
Examining the GAO’s Assessment
The US GAO stands as an independent entity, serving as a congressional watchdog. It is tasked with providing unbiased information to Congress and other governmental bodies, ensuring transparency and accountability.
The GAO’s review has placed Staff Accounting Bulletin No. 121 (SAB 121) under the spotlight, categorizing it as a “rule” under the Congressional Review Act (CRA) and Administrative Procedure Act (APA). This categorization brings to light allegations of non-compliance by the SEC, suggesting a potential violation of federal law.
Ripple’s Impact on the Crypto Sphere
SAB 121 has had a noticeable impact on the crypto industry, stifling innovation and hindering progress. The SEC implemented this bulletin without the necessary congressional approval, a move that has not gone unnoticed.
John E. Deaton has been vocal about his criticisms of the SEC, citing a pattern of non-compliance and questionable ethics. Stuart Alderoty, Ripple’s Chief Legal Officer, has also shared his observations, highlighting the inconsistencies in SEC Chair Gary Gensler’s public statements compared to the agency’s actions.
Looking Ahead: What’s Next?
Cody Carbone from Digital Chamber has provided an in-depth analysis of the situation. He criticizes the SEC’s attempt to minimize the importance of SAB 121 and sheds light on the procedures mandated by the CRA, emphasizing the 60-day review phase.
The potential for a lawsuit against the SEC is becoming more apparent, with the APA’s notice-and-comment requirement at stake. The crypto market, with XRP trading at $0.6042, is closely watching as the events unfold.