In a recent interview with law professor J.W. Verret on Crypto Law TV, Ripple’s Chief Legal Officer (CLO), Stuart Alderoty, asserted that the status of XRP as a non-security would remain intact, even if the U.S. Securities and Exchange Commission (SEC) appeals the ruling. This assertion comes following Judge Analisa Torres’ landmark decision, which declared that XRP is not a security and that its secondary market sales do not constitute investment contracts.
Judge Torres’ Ruling Stands Firm
During the interview, a segment of which was shared by Digital Asset Investor, a well-known figure within the XRP community, Alderoty expressed his unwavering confidence in Judge Torres’ ruling. He emphasized that this decision has become the “law of the land” and is unlikely to be overturned by the Second Circuit Court of Appeals. According to Alderoty, the Second Circuit has a historically low reversal rate, with less than 10% of lower court rulings being overturned.
“Given Judge Torres’ careful treatment of all of the issues in this case, we are very confident that the SEC won’t be successful in overturning the court’s decision,” Alderoty noted.
Ripple’s Legal Strategy and the SEC’s Position
Alderoty further suggested that even if the SEC were to challenge Judge Torres’ ruling on XRP’s non-security status at the Supreme Court level, their chances of success would remain slim. He urged the SEC to reconsider any plans to appeal, arguing that the case does not advance the commission’s mission of protecting investors, particularly since there are no allegations of fraud or harm involved.
He criticized the SEC’s approach, accusing the regulatory body of engaging in “litigation gamesmanship” rather than adhering to the law. This sentiment reflects a broader frustration within the cryptocurrency community regarding the SEC’s regulatory tactics, which many see as overreaching.
Courts Likely To Continue Rejecting SEC’s Expansive Theories
Alderoty’s comments come in the wake of a broader legal battle between Ripple and the SEC, which has seen the regulatory agency’s arguments repeatedly dismissed by the courts. Judge Torres notably rejected the SEC’s attempt to expand the definition of securities law through this case. Alderoty believes that this trend will continue, with appellate courts and possibly the Supreme Court upholding Judge Torres’ decision.
Interestingly, the SEC’s recent attempt to file an interlocutory appeal focused on overturning the summary judgment decision related to programmatic sales and other XRP distributions, rather than challenging the declaration that XRP is not a security. The court denied this appeal, which Alderoty sees as a further validation of Ripple’s legal standing.
Also Read: Ripple Lawsuit Nears End – SEC Appeal Chances At Less Than 10%
The SEC’s next move remains uncertain. Should the commission choose to appeal Judge Torres’ ruling on XRP’s non-security status, it will face significant legal hurdles. The case has set a critical precedent in the ongoing debate over cryptocurrency regulation, with implications that could resonate throughout the industry for years to come.
In the meantime, Ripple continues to build on its legal victories, positioning itself as a key player in the evolving landscape of digital asset regulation. The outcome of this legal saga will likely shape the future of how cryptocurrencies are treated under U.S. law.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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