- Alderoty criticizes SEC’s relentless pursuit to regulate crypto, calling it a “security war.”
- XRP’s advantage if SEC appeals judgment; Deaton predicts non-security status for XRP in 2 years.
- Ripple vs SEC ruling sets precedent for crypto-related cases; significant impact on the ecosystem.
Stuart Alderoty, the General Counsel of Ripple Labs Inc., has strongly criticized the actions of the United States Securities and Exchange Commission (SEC) regarding their relentless pursuit to regulate the cryptocurrency ecosystem, citing it as a purported “security war.”
In response to a previous tweet by the company’s CEO, Brad Garlinghouse, accusing the market regulator of spearheading a retail protection campaign that has severely impacted investors, Stuart Alderoty posted a tweet expressing his viewpoint on the matter. He highlighted concerns about the extent of the damage inflicted on investors, emphasizing the alleged negative repercussions caused by the regulatory actions.
Alderoty made a noteworthy observation, pointing out that the SEC is exerting authority in a market where it lacks proper jurisdiction. As the Chief Legal Officer of Ripple, he highlighted the SEC’s stance on cryptocurrencies being treated as securities. However, he argued that if a particular crypto asset doesn’t fit the definition of security, then there should be no grounds for the market regulator to impose its enforcement.
Ultimately, Alderoty expressed his opinion that the actions of the SEC appear to be driven more by political maneuvering than by any genuine benefit to stakeholders. He believes these measures do not serve the interests of any involved parties and could potentially lead to undesirable outcomes.
A securities agency only has jurisdiction over securities. No security, no role for the SEC. Pretending to have jurisdiction when there is none, is simply a political power play. It helps no one; it hurts everyone
Stuart Alderoty, General Counsel of Ripple Labs Inc.
The executives and stakeholders of Ripple have been vocal in expressing their disapproval of the SEC’s position in the lawsuit involving Ripple. On the other hand, the market regulator, the SEC, has publicly stated that it disagrees with the ruling that XRP is not considered a security when sold on the secondary market. This disagreement indicates that the SEC is contemplating the possibility of appealing the court’s decision, marking its first indication of potentially pursuing further legal action.
Crypto legal experts have emphasized that if the SEC decides to appeal the summary judgment, XRP is likely to have a significant advantage for the next two years. During the potentially lengthy appeal process, XRP holders’ lawyer, John Deaton, believes that XRP will be officially recognized as a non-security, allowing it to retain its current advantages and continue being traded on major cryptocurrency exchanges unless the final verdict alters the situation.
The Ripple vs SEC lawsuit holds considerable significance within the crypto ecosystem, and the recent ruling is seen as the de facto precedent that could influence the outcome of other similar cases in the foreseeable future. The implications of this case extend beyond just the parties involved and may serve as a guiding reference for legal matters concerning cryptocurrencies in the broader context of the market.
