XRP Lawsuit: Lawyer Targets Gary Gensler Amid SEC’s Latest Defeat

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XRP Lawsuit: The U.S. Securities and Exchange Commission (SEC) faces yet another courtroom setback, gaining attention from the crypto market enthusiasts.

This time, a judge dismissed their attempt to regulate corporate cybersecurity, a move hailed by critics. Among the vocal opponents is James Murphy, popular as MetaLawMan on X, who pointedly criticized SEC Chair Gary Gensler. Notably, this comes amid the ongoing XRP lawsuit, further intensifying scrutiny on the SEC’s actions.

SEC Faces Another Courtroom Defeat Amid Ongoing XRP Lawsuit

The cryptocurrency community reacts as the U.S. SEC faces another courtroom defeat amid the ongoing XRP lawsuit. For context, the U.S. Securities and Exchange Commission (SEC) recently faced a significant defeat in its case against SolarWinds. A federal judge rejected the SEC’s attempt to oversee corporate cybersecurity controls, a ruling that has widespread implications.

The SEC had argued that it should regulate all internal controls of public companies, including cybersecurity measures. However, U.S. District Judge Paul A. Engelmayer dismissed this argument, stating it would give the SEC overly broad regulatory power.

Meanwhile, Judge Engelmayer’s decision highlighted the overreach of the SEC’s rationale. He noted that accepting the SEC’s argument would allow the agency to regulate background checks, padlocks for storage, water park safety measures, and password configurations. The judge’s ruling emphasized that the SEC’s authority should remain limited to financial controls, and not extend to all internal safeguards.

This ruling has relieved many companies concerned about regulatory penalties following cyberattacks. The case stemmed from a 2020 cyberattack on SolarWinds, where Russian hackers infiltrated the company’s software to access federal agencies and major tech firms.

Besides, the judge also dismissed SEC claims that SolarWinds improperly disclosed the severity of the breach.

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Ripple Community Reacts

The SEC’s latest defeat has caught the attention of the Ripple community, especially amid the ongoing XRP lawsuit. James Murphy, a prominent lawyer and critic of the SEC, voiced his concerns on X. Murphy argued that the SEC’s repeated losses should prompt Congress to reconsider funding for its Chair Gary Gensler’s initiatives against American companies.

Meanwhile, Murphy’s criticism resonates with many in the XRP community who have long questioned the SEC’s approach to regulation. Notably, the XRP lawsuit has been a hot topic lately, with various speculations about its outcome and a potential settlement.

However, some believe a settlement is unlikely, while others anticipate a resolution soon. Besides, Ripple CEO Brad Garlinghouse has expressed optimism about the lawsuit ending soon, though he has not provided a specific timeline.

The ongoing Ripple Vs. SEC battle highlights the SEC’s challenges in enforcing its regulatory agenda. With the recent defeat in the SolarWinds case, the SEC’s authority and approach to cybersecurity regulation are under intense scrutiny. As the XRP lawsuit continues, the SEC’s strategies and leadership, particularly under Gary Gensler, remain critical topics of debate.

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