Ripple Legal Chief Anticipates SEC Appeal to Amplify Ripple Labs’ Victory

Ripple’s Chief Legal Officer, Stuart Alderoty, remains undeterred by concerns surrounding a possible appeal by the U.S. Securities and Exchange Commission (SEC) following the recent landmark ruling in favor of Ripple Labs.

In a recent TechCrunch podcast on July 26, Alderoty expressed confidence that an appeal by the SEC could actually bolster Ripple Labs’ partial victory against the financial regulator. He firmly believes that the XRP token should not be classified as an investment contract, and Ripple is prepared to defend its position in any appeal brought before the courts.

Alderoty asserted, “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 even a greater extent.”

The pivotal ruling on July 13, by Judge Analisa Torres, declared 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.

Following the ruling, the SEC expressed discontent with certain aspects of the decision during its ongoing case against Terraform Labs founder, Do Kwon. The SEC indicated its intention to appeal the split-decision ruling in the future, stating that retail sales of XRP should have been regarded as securities.

SEC Chair Gary Gensler also voiced disappointment over the court’s verdict on XRP and vowed to continue evaluating the ruling.

Despite his optimism, Alderoty emphasized that the crypto industry still faces regulatory uncertainty in the U.S. He criticized the SEC’s “regulation by enforcement” approach, which has resulted in the country lagging behind other jurisdictions in terms of crypto regulation.

According to Alderoty, the ruling in Ripple’s case could serve as a precedent and offer reassurance to other judges that the SEC’s position on cryptocurrencies may be misguided. However, he cautioned that a rational, comprehensive, and transparent regulatory framework for the crypto sector is still urgently needed in the U.S. to bring the country up to speed with the rest of the world.

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