Main Points:
- Ripple’s Chief Legal Officer (CLO), Stuart Alderoty, predicts that the SEC may appeal the XRP ruling despite a low reversal rate in court decisions.
- Alderoty criticizes the SEC for pursuing litigation that he claims does not serve its core mission of investor protection.
- Ripple remains confident in the ruling that XRP is not a security, even if the SEC decides to appeal.
- Alderoty urges the SEC to focus on its original mission instead of targeting non-fraudulent cases.
Ripple’s Legal Chief Foresees Possible SEC Appeal
In an interview with Cryptolaw TV, Ripple’s Chief Legal Officer, Stuart Alderoty, expressed his view that the U.S. Securities and Exchange Commission (SEC) is likely to appeal the final ruling in the ongoing lawsuit over XRP. The SEC’s litigation has centered around whether XRP should be classified as a security, a position that Ripple has firmly disputed.
Alderoty remarked that if the SEC were acting rationally, it would withdraw from the case, emphasizing that no victims or fraud were involved. Despite this, he noted the possibility of an appeal, highlighting his skepticism about the SEC’s rationality when it comes to cryptocurrencies. He further criticized the regulatory body for what he described as a focus on legal tactics rather than a faithful application of the law.
The SEC’s Mission Questioned
Alderoty has openly criticized the SEC for deviating from its core mission of investor protection. According to him, the SEC’s actions in the Ripple case have no clear benefit to investors or the market. He pointed out that the court has already concluded that there were no victims or fraud, and that XRP is not a security. The CLO believes that the SEC should stop pursuing groundless lawsuits and return to its primary objective of protecting investors.
He emphasized that even if the SEC decides to appeal, Ripple remains confident in the original ruling. Alderoty stated that Judge Torres, who ruled in favor of Ripple, carefully considered all aspects of the case, and any appeal would likely fail to overturn the decision.
SEC’s Appeal Likely to Fail
While anticipating a possible appeal from the SEC, Alderoty dismissed its chances of success. He cited statistics showing that only around 10% of appellate court cases result in a reversal of lower court decisions. He expressed confidence in the integrity of the ruling, reiterating that XRP is not a security under U.S. law and that this fact will not change, regardless of an appeal.
Alderoty suggested that an appeal would be a waste of time and resources, as the original court ruling meticulously addressed every issue raised. The SEC, he contended, should refrain from engaging in litigation that has little chance of advancing its mission or protecting investors.
A Call for the SEC to Refocus
In closing, Alderoty urged the SEC to abandon its pursuit of cases like this, which he believes only serve to undermine the credibility of the regulatory body. Instead, he encouraged the agency to focus on its original mandate of protecting investors and the markets. He reiterated that the XRP case presented no harm to investors or the market, making the SEC’s actions unnecessary and misguided.
Alderoty concluded by asserting that the lawsuit was overly aggressive from the start, and that the SEC has a poor track record when it comes to cryptocurrency regulation. He called on the agency to return to its roots and focus on cases that actually harm investors, rather than pursuing what he considers to be baseless litigation against Ripple.
Ripple’s legal chief is prepared for the possibility of an SEC appeal, though he remains confident that such an appeal would be futile. Alderoty’s statements reflect his frustration with the SEC’s approach to cryptocurrency regulation, urging the agency to realign with its mission of investor protection. With the court ruling strongly in Ripple’s favor, the company believes that any further action by the SEC would be both unnecessary and ineffective in reversing the judgment.
