Elon Musk has criticized the US Securities and Exchange Commission (SEC) for being a “weaponized institution”. The move comes after a court ruling declared that the SEC had acted unlawfully in enforcing a Nasdaq policy requiring corporate boards to implement diversity quotas.
SEC Chairman, Judge Andrew Oldham, stated that the commission’s authority is to ensure fair markets, not force politically motivated identity politics into corporate decision-making. Musk has repeatedly expressed his disdain for the SEC, particularly after being ordered to testify before the court. He recently announced the creation of “DOGE” and plans to slash the federal budget by 30%. To achieve this, he proposes a return-to-office mandate for government workers, suggesting significant cuts to entire agencies.
Ripple CEO Brad Garlinghouse and CTO David Schwartz responded to Musk’s post, emphasizing that the company has been back on track after obtaining approval from the New York State Department of Financial Services. The stablecoin RLUSD will now be authorized to be offered publicly, providing a U.S.-regulated alternative to Tether’s USDT.
The decision comes amidst increased competition in the stablecoin market, with companies like PayPal developing their own stablecoins. The SEC has been directing Ripple to file its final arguments by January 15, after which the court will assess motions to dismiss or proceed with certain aspects of the case.
Ripple was previously sued by the SEC in December 2020 for allegedly selling XRP without proper registration. However, the company maintains that XRP should be classified as a digital currency, not a security. The outcome of this case could set a precedent for other cryptocurrencies and reshape the regulatory environment for the entire crypto sector.
Source: https://u.today/elon-musk-slams-sec-ripple-ceo-agrees