- Ripple’s Chief Legal Officer, Stuart Alderoty, doubts the SEC will succeed if it appeals the recent XRP ruling, criticizing the regulator’s approach and emphasizing the court’s strong stance on the case.
- Alderoty urged the SEC to refocus on protecting investors rather than pursuing what he considers a baseless case.
Ripple’s Chief Legal Officer, Stuart Alderoty, recently speculated on the likelihood of the U.S. Securities and Exchange Commission (SEC) appealing the final ruling in the ongoing Ripple lawsuit over XRP. In a live interview on Cryptolaw TV, Alderoty expressed his belief that an appeal from the SEC wouldn’t be surprising but would likely fail due to the court’s strong stance on the matter.
Alderoty criticized the SEC’s actions, questioning the regulator’s rationality and urging it to reconsider its approach. “If the SEC were a rational actor, they should just move on from this case,” he remarked, referring to the court’s conclusion that no victims or allegations of fraud were present in the case. He stressed that the ongoing litigation does not align with the SEC’s core mission of investor protection.
SEC’s Record and Future Outlook
Alderoty’s skepticism towards the SEC’s rationality is not unfounded. The Ripple legal chief highlighted past criticisms of the SEC, noting that the court had previously accused the regulator of engaging in “litigation gamesmanship and tactics” rather than applying the law faithfully.
Despite his concerns, Alderoty remains confident about the court’s ruling, asserting that XRP’s status as a non-security and the nature of its secondary market trading have been firmly established as legal precedents.
He advised that if the SEC does decide to appeal, it would face significant challenges. “Statistically, the Court of Appeals reverses lower courts less than 10% of the time,” Alderoty pointed out. Given Judge Torres’s meticulous handling of the case, Alderoty is optimistic that any appeal would not succeed. “Given Judge Torres’s careful and thoughtful treatment of all of the issues in this case, we’re very confident that any appeal would withstand a challenge by the SEC,” he affirmed.
The Call for Focus
In conclusion, Alderoty urged the SEC to return to its primary mission of protecting investors rather than pursuing what he views as baseless cases. He described the Ripple case as an overreach and emphasized that there was no harm to investors or the market. “Look, SEC, go back to your core mission of protecting investors in the market and stop focusing on cases where there was no harm to investors and there was no harm to the market,” Alderoty advised.
As the situation evolves, all eyes will remain on whether the SEC opts to appeal and how the appellate court will handle any such challenges.
