Ripple’s Chief Legal Officer, Stuart Alderoty, dismissed concerns about a potential appeal by the United...
Ripple’s Chief Legal Officer, Stuart Alderoty, dismissed concerns about a potential appeal by the United States Securities and Exchange Commission (SEC) following the landmark ruling on Ripple earlier this month.
He believes that if the case goes to appeal, the court might further consolidate Ripple Labs’ partial victory over the financial regulator.
Alderoty reiterated his position that the XRP token does not qualify as an investment contract and that Ripple is ready to face any appeal brought by the SEC.
He expressed confidence in the judge’s ruling, stating that it was a faithful application of the law and that a court of appeals might even amplify it further.
The ruling on July 13 by Judge Analisa Torres concluded that XRP was not a security when sold to the public on cryptocurrency exchanges but could be considered a security when sold to institutional investors.
However, the SEC, in its ongoing case against Terraform Labs founder Do Kwon, expressed its dissatisfaction with the ruling and hinted at appealing the split-decision ruling in the future.
SEC lawyers asserted that retail sales of XRP should have been deemed securities and stated their intention to recommend further review.
SEC Chair Gary Gensler also expressed disappointment over the court’s decision on XRP, indicating that the regulator would continue to assess the ruling.
Despite the positive outcome for Ripple, Alderoty warned that the crypto sector still lacks a solid regulatory foundation.
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He criticized the SEC’s “regulation by enforcement” approach, which he believes has caused crypto laws in the U.S. to lag behind other jurisdictions.
Alderoty predicted that if the SEC continues to claim that crypto assets are securities, it will likely lose ongoing cases where such claims are made.
However, he stressed the need for a rational, comprehensive, and understandable regulatory framework for crypto in the U.S. to bring it up to par with the rest of the world.
At present, XRP is trading at around $0.70, showing a significant increase of nearly 43% in the last month, according to Cointelegraph data.
Despite the recent legal victory, Ripple’s legal battle with the SEC underscores the importance of establishing clear regulations for cryptocurrencies in the United States.
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