Stuart Alderoty, the Chief Legal Officer of Ripple, has firmly dismissed concerns over a potential appeal by the U.S. Securities and Exchange Commission (SEC) in the wake of a recent groundbreaking decision in favor of Ripple Labs.
The judgement came on July 13, 2023, when Judge Analisa Torres ruled that XRP is not a security when sold to the general public on cryptocurrency exchanges and should only be deemed a security when given to institutional investors.
Following the verdict, the SEC expressed its discontent and hinted at the possibility of appealing the split-decision ruling.
In a TechCrunch podcast on July 26, 2023, Alderoty reiterated his belief that the XRP token should not be classified as an investment contract. He emphasized that the Ripple team remains resolute and unyielding in the face of any legal actions brought forth by the SEC.
According to court documents, SEC’s lawyers disagreed with parts of the Judge’s decision and urged the Court not to adhere to it. They argued that XRP retail transactions should have been treated as securities. The regulatory body, however, noted that they are considering various options for additional reviews and intend to recommend a study on the matter.
Despite the SEC’s stance, Alderoty stood firm in his agreement with the judgment, stating, “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.“
Alderoty projected that the SEC might face setbacks in its ongoing lawsuits seeking to classify crypto assets as securities. He firmly asserted that the SEC’s position is misguided and expressed confidence that other judges will find comfort in their case and the judgment provided by Judge Torres.
However, despite his optimism, Alderoty cautioned that the cryptocurrency industry in the United States still lacks a solid regulatory footing. He criticized the SEC’s “regulation by enforcement” approach, saying it has resulted in the U.S. falling behind other countries regarding crypto regulation.
Alderoty emphasized that Ripple, like many others in the crypto space, seeks a clear, comprehensive, and coherent regulatory framework for cryptocurrencies in the United States.
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