A series of tweets has brought fresh scrutiny to apparent conflicts of interest at the Securities and Exchange Commission (SEC) as its high-stakes legal battle against blockchain firm Ripple continues.
The tweets highlight the timely transitions of two senior SEC officials integral to the Ripple lawsuit. Marc Berger left his role as Acting Enforcement Director in December 2022, just months after the SEC sued Ripple. He promptly joined the elite law firm Simpson Thacher as co-head of its government investigations practice.
Recent Exits of Key Officials Cast Doubt on the Regulator’s Impartiality
In April 2023, Dalia Blass departed the SEC after stints heading the Division of Investment Management and Investment Management Policy. She became a partner at Sullivan & Cromwell, where former SEC chair Jay Clayton now serves as senior policy advisor.
These latest revolving-door staff changes have renewed accusations of improper industry affiliations at the SEC. The optics are especially concerning given the agency’s aggressive three-year pursuit of Ripple on grounds some perceive as biased.
Before joining the SEC, Berger and Blass had deep ties to Wall Street law firms. Their rapid transitions to the private sector reinforce perceptions of an insular, biased SEC targeting the crypto industry.
With the Ripple case poised for a critical ruling, skepticism around the SEC’s motives has reached a fever pitch. The high-profile departures will amplify calls for ethics reforms and reinvigorate impartial crypto oversight. Restoring public trust remains an urgent priority for the embattled regulator.
