Ripple’s chief legal officer, Stuart Alderoty, has dismissed concerns about a potential Securities and Exchange Commission (SEC) appeal to the landmark Ripple ruling earlier this month. Alderoty anticipates that if the SEC takes the case to appeal, it could further amplify Ripple Labs’ partial victory.
The Ongoing Legal Battle
Speaking on a July 26 TechCrunch podcast, Alderoty reiterated his stance that the XRP token does not constitute an investment contract, and that Ripple would not back down from any appeal brought to the courts by the SEC.
“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 even a greater extent,” he confidently asserted.
Judge Torres’ Landmark Decision
On July 13, Judge Analisa Torres ruled 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, the SEC has voiced its displeasure with the ruling, hinting at a possible appeal.
SEC’s Potential Appeal and Ripple’s Stance
The SEC used its ongoing case against Terraform Labs founder Do Kwon to express its dissatisfaction with the ruling. SEC lawyers wrote, “Respectfully, those portions of Ripple were wrongly decided, and this Court should not follow them,” arguing that retail sales of XRP should have been deemed securities.
Alderoty predicted that if the SEC continues to claim that crypto assets themselves are securities, it could begin to lose ongoing cases where it attempts to make such claims. He is optimistic about Ripple’s position but warned the crypto sector about the lack of solid regulatory ground.
Need for Better Regulation
Despite his optimism, Alderoty highlighted the urgent need for a rational and comprehensive regulatory framework for crypto in the U.S. He criticized the SEC’s regulation by enforcement approach, which has led to U.S. crypto laws lagging behind other jurisdictions.
“The U.S. has been visibly falling behind the rest of the world due to the SEC’s refusal to faithfully apply the law,” he remarked.
Meanwhile, XRP continues to trade at around $0.70, marking a nearly 43% rise in the last month.
