- Stuart Alderoty has confidently addressed concerns over a possible SEC appeal.
- Alderoty has predicted a changing tide in favor of crypto assets against the SEC’s regulatory challenges.
- The SEC’s regulation-by-enforcement approach has come under scrutiny.
Ripple’s Legal Chief, Stuart Alderoty, confidently brushed aside concerns surrounding a potential appeal by the U.S. Securities and Exchange Commission (SEC) in response to the recent landmark XRP ruling. Emphasizing their preparedness for any such move, Alderoty even saw the possibility of further strengthening their triumph over the watchdog.
Company’s Legal Team Confident in Strengthening of XRP Ruling
Notably, the SEC had hinted at considering an appeal in light of the Ripple ruling while battling Terraform Labs and its founder, Do Kwon. However, on the TechCrunch podcast, Stuart Alderoty maintained that XRP should not be classified as an investment contract and reiterated the Ripple legal team’s unwavering resolve against the SEC’s appeal.
"We firmly believe the judge's ruling was sound, accurately applying the law. In fact, we anticipate a court of appeals not only affirming the ruling but possibly even strengthening its impact."
The ruling, handed down by Federal District Judge Analisa Torres on July 13, had declared that XRP was “not necessarily a security on its face,” except for specific instances involving hedge funds and institutional buyers. This victory was widely celebrated within the Ripple community and the broader cryptocurrency industry.
SEC May Face More Defeats Predicts Ripple’s Alderoty
The SEC’s subsequent dissatisfaction with the verdict and hints of a challenge to come only spurred Alderoty’s forecast that the regulatory agency might continue facing defeats in ongoing cases where it attempts to classify crypto assets as securities.
"Our case, along with Judge Torres' decision, will undoubtedly reassure other judges that the SEC's approach is misguided."
Despite the legal victory removing a long-standing regulatory uncertainty surrounding Ripple, Alderoty acknowledged that the cryptocurrency industry still lacks a clear and comprehensive regulatory framework in the United States.
He criticized the SEC’s regulation-by-enforcement approach, which has hampered the growth of cryptocurrencies in the country and resulted in a lag behind the rest of the world.
"As we move forward, it remains crucial to establish a rational, all-encompassing regulatory framework for cryptocurrencies in the U.S. The SEC's failure to faithfully apply the law has been detrimental to our nation's position in the global crypto landscape."
On the Flipside
- While the recent ruling favored Ripple, the legal battle is still ongoing and could potentially impact XRP’s long-term value and market stability.
- There are still uncertainties regarding the broader implications of the XRP ruling on other cryptocurrencies; a more cautious approach to classification is still necessary to help protect investors.
- The lack of a comprehensive regulatory framework for cryptocurrencies in the U.S. has led to a fragmented and inconsistent approach, leaving businesses and investors uncertain.
Why This Matters
The legal victory in the XRP ruling is a momentous achievement for Ripple and a crucial milestone in the ongoing battle for clarity and regulation within the cryptocurrency industry.
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