- Ripple’s chief legal officer, Stuart Alderoty, predicts a stronger victory for Ripple if the SEC opts to appeal the recent court ruling.
- Alderoty criticizes the SEC’s regulation-by-enforcement approach, saying it has caused U.S. crypto laws to lag behind other jurisdictions.
Ripple Labs’ top legal expert, Stuart Alderoty, remains unfazed by the possibility of an appeal by the U.S. Securities and Exchange Commission (SEC) regarding the recent court decision favoring Ripple. Alderoty is confident that any appeal by the SEC could, paradoxically, fortify Ripple Labs’ partial win over the regulator.
Appearing on a TechCrunch podcast on July 26, Alderoty reinforced his stance that Ripple’s XRP token does not qualify as an investment contract. He maintained that the Ripple team is fully prepared to contest any appeal initiated by the SEC.
Strong Court Position: Ripple
“We think the judge got that right, and we think that was a faithful application of the law, and I think a court of appeals will not only affirm that but maybe even amplify that to an even greater extent.”
Earlier this month, Judge Analisa Torres decreed that XRP was not a security when sold to the general public via cryptocurrency exchanges, though it could be considered one when sold to institutional investors.
However, the SEC hinted at a potential appeal against the split-decision ruling in its ongoing case against Terraform Labs founder, Do Kwon. In its argument, the SEC’s lawyers insisted that retail sales of XRP should have been classified as securities.
Expressing his disappointment over the court’s XRP decision, SEC Chair Gary Gensler stated that the regulator will continue to evaluate the ruling.
The Ripple Effect on Future Cases
In the wake of the ruling, Alderoty forecasted that the SEC might start losing ongoing cases if it continues to argue that cryptocurrencies are securities. He commented,
“Our case and the decision rendered by our judge [Torres] will provide comfort to other judges that the SEC is just misguided.”
Despite his positive outlook, Alderoty cautioned that the cryptocurrency sector is still a significant distance from stable regulatory footing. He criticized the SEC’s regulation-by-enforcement method, arguing that it has resulted in U.S. crypto laws lagging behind other countries. Alderoty emphasized the need for a coherent, comprehensive, and intelligible regulatory framework for cryptocurrency in the U.S.
Meanwhile, Ripple’s native token, XRP, is currently trading at approximately $0.70, reflecting a nearly 43% increase over the past month, as per Cointelegraph data.