Ripple CLO Warns of SEC Appeal: Will the Victory Hold?
Ripple, the cryptocurrency company embroiled in a long-running legal battle with the U.S. Securities and Exchange Commission (SEC), has achieved a significant victory with a recent court ruling. However, the company’s Chief Legal Officer (CLO), Stuart Alderoty, has cautioned that the SEC may still pursue an appeal, potentially prolonging the legal saga.
The case, which has been closely watched by the cryptocurrency community, centered on whether Ripple’s XRP token constituted a security under U.S. law. After nearly four years of litigation, a federal judge ruled in Ripple’s favor, finding that the company did not violate securities laws through its sales of XRP to exchanges.
While the judge did find that Ripple had violated securities laws in direct sales to institutional clients, the company was ultimately ordered to pay a $125 million fine, a fraction of the $2 billion initially sought by the SEC. Sponsored
Alderoty expressed satisfaction with the court’s decision, emphasizing that it not only finalizes the case but also sets a precedent for the broader cryptocurrency industry. “We were very happy to have received this ruling; it represents finality,” he stated in an interview.
The CLO also highlighted the court’s rejection of the SEC’s claims that Ripple acted recklessly and its reminder to the regulator that there were no allegations of fraud or victims in the case. Despite the positive outcome, Alderoty remains cautious about the SEC’s potential next move.
Given the regulator’s history of aggressive actions in cryptocurrency, he believes an appeal is possible. “The SEC has proven itself not to be rational… So, I wouldn’t be surprised if the SEC does appeal,” he stated.
Lawyer Calls for Clear Legislation Amidst SEC’s XRP Case
The lawyer further pointed out that even if the SEC decides to appeal, XRP’s legal standing as a non-security in the secondary market remains unchanged. He argued that a rational SEC would recognize this and move on from the case. Sponsored
Alderoty also criticized the SEC’s approach to regulating the cryptocurrency industry, suggesting that its actions have been overly aggressive and harmful to retail XRP holders. He contended that the case had not advanced the SEC’s core mission of protecting investors, as there were no victims or losses in the transactions under scrutiny.
Instead, he argued that the SEC’s actions have created uncertainty and hindered the growth of the cryptocurrency industry in the U.S. Looking ahead, Alderoty stressed the need for clear and rational legislation for the cryptocurrency industry.
On the Flipside
While the court ruling is a significant win for Ripple, the SEC’s history of aggressive actions in cryptocurrency suggests that an appeal is possible.
Even if the SEC does not appeal, the case highlights the ongoing uncertainty surrounding the regulatory landscape for cryptocurrencies in the U.S.
Why This Matters
The court ruling defines how XRP and similar cryptocurrencies are regulated. It sets a precedent and underscores the need for clearer regulations. The possibility of an SEC appeal highlights ongoing concerns about regulatory consistency and its impact on industry growth.
To learn more about the legal battle between Ripple and the SEC and the SEC’s stance on cryptocurrencies, read here:Ripple Exec Doubts SEC Will Let XRP Ruling Go UncontestedFor more on the ongoing legal battle between Ripple and the SEC and the experts’ predictions on the outcome, read here:SEC Given 90% Chance to Win Ripple Appeal?! Here’s Why
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