Ripple’s chief legal officer, Stuart Alderoty, has dismissed concerns of a potential appeal by the United States Securities and Exchange Commission (SEC) regarding the recent landmark ruling on Ripple. Alderoty believes that if the SEC does decide to appeal, the court could further consolidate Ripple Labs’ partial victory over the financial regulator. Speaking on a podcast with TechCrunch, he reiterated his position that the XRP token does not constitute an investment contract and that Ripple would not back down from any appeal brought by the SEC.
The ruling, which was made by Judge Analisa Torres on July 13, stated that XRP was not a security when sold to the public on crypto exchanges but could be treated as a security when sold to institutional investors. However, on July 21, the SEC used its ongoing case against Terraform Labs founder Do Kwon to express its grievances with the ruling and hinted that it would appeal the split-decision in the future. The SEC lawyers argued that the retail sales of XRP should have been deemed securities.
Despite the SEC’s intention to appeal, Alderoty remains confident in the judge’s decision and even believes that a court of appeals could amplify it to a greater extent. He predicted that if the SEC continues to claim that crypto assets are securities, it would start to lose ongoing cases where it makes such claims. He stated that Ripple’s case and the decision by Judge Torres would provide comfort to other judges, highlighting that the SEC is misguided in its approach.
However, Alderoty also cautioned that the crypto sector still lacks a solid regulatory framework and criticized the SEC’s regulation by enforcement approach. He stressed the need for a rational, comprehensive, and understandable regulatory framework for cryptocurrencies in the United States. He argued that the SEC’s refusal to faithfully apply the law has caused the U.S. to fall behind other jurisdictions in terms of crypto regulation.
Meanwhile, the price of XRP has been on the rise, currently valued at around $0.70, with an increase of nearly 43% in the last month. This positive performance reflects investors’ confidence in Ripple’s legal victory and the potential for further consolidation in their favor.
In conclusion, Stuart Alderoty, Ripple’s chief legal officer, is unfazed by the possibility of an appeal by the SEC. He firmly believes that the court would uphold and even strengthen Ripple’s position in an appeal. However, he emphasized the need for a comprehensive regulatory framework in the U.S. to ensure the growth and development of the crypto sector. Despite the ongoing legal battles, the market has responded positively to Ripple’s legal victory, with the price of XRP experiencing significant gains in recent weeks.