SEC Appeal Could Benefit XRP, Says RippleLabs Legal Team
SEC Appeal Could Benefit XRP, Says RippleLabs Legal Team
The Battle for Clarity: Ripple’s Legal Chief Believes an Appeal by the SEC Could Consolidate Its Win
Ripple’s legal chief, Stuart Alderoty, has expressed confidence that a potential appeal by the Securities and Exchange Commission (SEC) following the recent ruling could actually work in favor of the company. Alderoty believes that an appeal by the Commission would further validate Ripple’s partial win, as the ongoing struggle for regulatory clarity in the blockchain industry continues.
In a recent interview on the TechCrunch podcast, Alderoty dismissed concerns about future actions from the regulator and highlighted the positive aspects of the recent ruling, stating it was a victory for both Ripple and the wider community. He specifically mentioned the judge’s faithful application of the law and expressed his belief that a court of appeals would not only uphold the ruling but potentially even strengthen it.
Furthermore, Alderoty predicted that if the SEC continues to assert that digital assets are securities in other cases involving crypto firms, they would likely face a similar fate. He stated, “Our case and the decision rendered by our judge will provide comfort to other judges that the SEC is just misguided.”
While Alderoty expressed confidence in Ripple’s legal victory, he emphasized that the United States still lacks a comprehensive regulatory framework for the cryptocurrency industry. He criticized the SEC’s strategy of “regulation by enforcement,” arguing that it hampers investment and puts the country at a disadvantage compared to other jurisdictions. Alderoty stressed the need for a rational, comprehensive, and understandable regulatory framework for crypto in the U.S. and highlighted the SEC’s failure to faithfully apply the law as a contributing factor to the country’s falling behind other nations.
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Is an Appeal Imminent?
The SEC brought a case against Ripple and two of its executives in December 2020, alleging the offering of unregistered securities to the public. After years of legal battles, Judge Analisa Torres of the Southern District of New York ruled in favor of Ripple regarding sales to the general public. The decision sparked excitement in the trading community, causing a significant surge in XRP’s price.
However, recent statements and court filings from the SEC indicate that the Commission may pursue an appeal. Filings in the SEC’s case against Terraform Labs suggest that the SEC intends to challenge the decision in the Ripple case. In these filings, the SEC lawyers stated that portions of the Ripple ruling were wrongly decided and urged the court not to follow them. They further indicated that the SEC is considering various avenues for further review and intends to recommend such review by the Commission.
Gary Gensler, the SEC’s Chairman, expressed disappointment over the ruling and emphasized the Commission’s commitment to protecting investors. This shows that the battle for clarity in the blockchain industry is far from over, and regulatory actions by the SEC could have far-reaching implications.
In summary, Ripple’s legal chief sees the potential appeal by the SEC as an opportunity to solidify their recent win. The ongoing legal battle signifies the need for regulatory clarity within the blockchain industry. As the SEC continues to grapple with its classification of digital assets, other judges may find comfort in Ripple’s victory and potentially question the validity of the SEC’s claims. However, amidst the legal complexities, the absence of a comprehensive regulatory framework in the U.S. hinders the growth and competitiveness of the country’s blockchain ecosystem. The outcome of any potential appeal will not only impact Ripple but will also shape the future of the regulatory landscape for cryptocurrencies in the United States.
