Ripple’s CLO Challenges SEC’s Authority, Urges Investors to Stay Strong

Ripple's Chief Legal Officer Highlights SEC's Fallibility

Ripple's chief legal officer, Stuart Alderoty, recently criticized the U.S. Securities and Exchange Commission (SEC), stating that the regulatory body is far from infallible. He expressed his belief that the SEC is burdened by issues and urged investors not to be intimidated when dealing with the agency.

In a social media post on X, Alderoty referenced an article from the Wall Street Journal that highlighted the Supreme Court's repeated rulings against the SEC in recent years. He emphasized that the SEC is "anything but infallible," describing it as a bloated, broken, and beleaguered organization. Alderoty advised investors to remain steadfast and not be intimidated even when faced with scrutiny from the SEC.

Pushback Against SEC's Intimidation Tactics

Lawyer John Deaton echoed Alderoty's sentiments, recalling a time when he sued the SEC and faced criticism for his actions. Deaton noted that the SEC's primary strength lies in its ability to intimidate individuals due to its seemingly limitless resources, which are funded by American taxpayers. Additionally, he mentioned that some people may fear reprisals from the IRS if they challenge the SEC. However, Deaton emphasized that the United States has a history of fighting against government oppression and intrusion, making it essential for individuals to stand up for their rights.

SEC's Recent Legal Losses

The SEC has recently faced several legal setbacks in cases involving cryptocurrency companies. Alderoty highlighted three significant victories for Ripple Labs against the SEC. These include the July 13 decision affirming that XRP is not a security, the October 3 decision denying the SEC's request for an interlocutory appeal, and the withdrawal of the SEC's lawsuit against Ripple CEO Brad Garlinghouse and co-founder Chris Larsen.

In another case, the SEC lost against Grayscale Investments regarding the conversion of Grayscale's bitcoin trust (GBTC) into a spot bitcoin exchange-traded fund (ETF). The U.S. Court of Appeals for the District of Columbia Circuit ruled in favor of Grayscale, stating that the SEC's denial of the proposal was arbitrary and capricious. The court ordered the SEC to reevaluate Grayscale's bitcoin ETF conversion application.

Criticism of SEC Chairman Gary Gensler

SEC Chairman Gary Gensler has faced criticism for his enforcement-centric approach to regulating the cryptocurrency industry. Gensler has consistently portrayed the crypto space as a hotbed of fraudulent activities and non-compliance. Kraken, a major cryptocurrency exchange, is currently facing a second lawsuit from the SEC this year, even after settling a previous lawsuit for $30 million. In response to Gensler's actions, a bill has been introduced in Congress seeking his removal as the SEC chair.

In conclusion, Ripple's chief legal officer's remarks shed light on the fallibility of the SEC and the importance of not succumbing to intimidation. With recent legal victories against the SEC, it is evident that the regulatory landscape surrounding cryptocurrencies is evolving. It remains to be seen how the SEC will adapt to these challenges and whether changes in leadership will impact its enforcement-centric approach. What are your thoughts on the SEC's actions? Let us know in the comments below.

Frequently Asked Questions

Is gold a good choice for an investment IRA?

If you are looking for a way to save money, gold is a great investment. It's also a great way to diversify your portfolio. But gold is not all that it seems.

It has been used throughout history as currency and it is still a very popular method of payment. It's often referred to as “the world's oldest currency.”

But gold, unlike paper currency, which is created by governments, is mined out from the ground. It's hard to find and very rare, making it extremely valuable.

The supply-demand relationship determines the gold price. The strength of the economy means people spend more, and so, there is less demand for gold. Gold's value rises as a result.

The flip side is that people tend to save money when the economy slows. This increases the production of gold, which in turn drives down its value.

This is why investing in gold makes sense for individuals and businesses. You will benefit from economic growth if you invest in gold.

In addition to earning interest on your investments, this will allow you to grow your wealth. You won't lose your money if gold prices drop.

How is gold taxed within an IRA?

The fair market value of gold sold is the basis for tax. When you purchase gold, you don't have to pay any taxes. It is not income. If you decide to make a sale of it, you'll be entitled to a taxable loss if the value goes up.

For loans, gold can be used to collateral. Lenders will seek the highest return on your assets when you borrow against them. For gold, this means selling it. However, there is no guarantee that the lender would do this. They may keep it. They may decide to resell it. In either case, you risk losing potential profits.

To avoid losing money, only lend against gold if you intend to use it for collateral. You should leave it alone if you don't intend to lend against it.

How much should precious metals be included in your portfolio?

First, let's define precious metals to answer the question. Precious metals have elements with an extremely high worth relative to other commodity. They are therefore very attractive for investment and trading. Gold is today the most popular precious metal.

There are many other precious metals, such as silver and platinum. The price of gold fluctuates, but it generally remains stable during times of economic turmoil. It is also unaffected significantly by inflation and Deflation.

In general, all precious metals have a tendency to go up with the market. That said, they do not always move in lockstep with each other. For instance, gold's price will rise when the economy is weak, while precious metals prices will fall. This is because investors expect lower rates of interest, which makes bonds less attractive investments.

The opposite effect happens when the economy is strong. Investors are more inclined to invest in safe assets, such as Treasury Bonds, and they will not demand precious metals. Because they are rare, they become more pricey and lose value.

To maximize your profits when investing in precious metals, diversify across different precious metals. Because precious metals prices are subject to fluctuations, it is best to invest across multiple precious metal types, rather than focusing on one.

Can I have a gold ETF in a Roth IRA

A 401(k) plan may not offer this option, but you should consider other options, such as an Individual Retirement Account (IRA).

A traditional IRA allows for contributions from both employer and employee. Another option is to invest in publicly traded corporations with an Employee Stockownership Plan (ESOP).

An ESOP is a tax-saving tool because employees have a share of company stock as well as the profits that the business generates. The money invested in the ESOP is then taxed at lower rates than if it were held directly in the hands of the employee.

A Individual Retirement Annuity is also possible. An IRA allows for you to make regular income payments during your life. Contributions to IRAs can be made without tax.

What is the value of a gold IRA

There are many advantages to a gold IRA. It can be used to diversify portfolios and is an investment vehicle. You can control how much money is deposited into each account as well as when it's withdrawn.

You also have the option to transfer funds from other retirement plans into a IRA. This is a great way to make a smooth transition if you want to retire earlier.

The best thing is that investing in gold IRAs doesn't require any special skills. These IRAs are available at all banks and brokerage houses. Withdrawals can happen automatically, without any fees or penalties.

That said, there are drawbacks too. Gold is known for being volatile in the past. Understanding why you want to invest in gold is essential. Are you seeking safety or growth? Are you looking for growth or insurance? Only after you have this information will you make an informed decision.

If you plan on keeping your gold IRA alive for a while, you may want to consider purchasing more than 1 ounce of pure gold. A single ounce will not be sufficient to meet all your requirements. You could need several ounces depending on what you plan to do with your gold.

You don't need to have a lot of gold if you are selling it. You can even manage with one ounce. But you won't be able to buy anything else with those funds.


  • Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (
  • You can only purchase gold bars at least 99.5% purity. (
  • If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (
  • Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (
  • If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (

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The growing trend of gold IRAs

Investors are increasingly turning to gold IRAs as a way to diversify and protect their portfolios from inflation.

The gold IRA allows owners to invest in physical gold bullion and bars. It can be used as a tax-free way to grow and it is an alternative investment option for people who are not comfortable with stocks or bonds.

A gold IRA allows investors to manage their assets without worrying about market volatility. Investors can protect themselves from inflation and other possible problems by using the gold IRA.

Investors also benefit from physical gold's unique properties, such as durability and portability.

The gold IRA also offers many other benefits, such as the ability to quickly transfer the ownership of the gold to heirs, and the fact the IRS doesn't consider gold a currency.

Investors who seek financial stability and a safe haven are finding the gold IRA increasingly attractive.


By: Kevin Helms
Title: Ripple’s CLO Challenges SEC's Authority, Urges Investors to Stay Strong
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Published Date: Sat, 02 Dec 2023 01:00:41 +0000

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