Ripple Executive Predicts Possible Outcomes in Case against the SEC
Chief Legal Officer at Ripple Stuart Alderoty projects critical rulings in the direction of XRP’s fate as the firm’s case with the US SEC continues.
Stuart Alderoty, the Chief Legal Officer at blockchain firm Ripple, has given his thoughts on the potential result of the protracted legal battle between Ripple and the US SEC. The case, which has been in court since December 2020, is still a talking point among cryptocurrency traders, given its implication for the regulation of digital assets in the US.
In an insight shared on X, Alderoty described three ways events might unfold over the coming months. He said the US Second Circuit Court of Appeals might affirm Judge Analisa Torres’s decision or expand upon it.
Alderoty added that the SEC’s hope for a remand is a “remote hope.” He later explained that Judge Torres’s ruling in Ripple’s favor is likely to stand, and Ripple’s defenses, including its Fair Notice argument, remain intact.
Could Judge Torres’s Decision Hold Firm?
The first ruling by Judge Torres in favor of Ripple had been the most critical development in the case. That fact had not changed even though there was an interlocutory appeal by the SEC. Alderoty underscored that nothing that had happened shook the arguments of Ripple, particularly its Fair Notice defense.
The Fair Notice argument turns on whether a person of “ordinary intelligence” could discern what was being prohibited by law on the part of the SEC. This has been integral to Ripple’s case.
If the court reverses its course now, there might be significant ramifications regarding how digital assets are classified going forward. As Alderoty explained, in the event of a remand, it would only return to court in the most “awkward” of positions for the SEC to argue against the intelligence of Judge Torres’s ruling.
Ripple Co-founder Under Scrutiny by the SEC
The SEC also accused the chief executive of Ripple, Brad Garlinghouse, and the co-founder, Chris Larsen, of personal sales of XRP, which the authority labeled as unregistered securities. Moreover, Alderoty claimed that the SEC did not appeal the ruling of the court that XRP was not a security following the sale in exchanges.
However, the SEC filed a civil appeal in court for review of what is required under the law with respect to personal sales by Garlinghouse and Larsen. This case could well go into 2025 or beyond, with Ripple continuing to prepare for such eventualities.
The Ripple Case Echoes Classic Courtroom Dramas
Meanwhile, Alderoty likened the legal battle to Herman Melville’s Moby Dick, comparing SEC Head Gary Gensler to Captain Ahab, obsessed with chasing after Ripple — the “whale.” He also humorously likened the ongoing legal situation to the court comedy My Cousin Vinny.
Public comments from Alderoty are a reflection of the blockchain firm’s belief in its position vis-a-vis the law. Already, the case has had significant consequences in the XRP market, with investors keenly anxious to see any developments regarding how the legal battle will get underway.
Ripple Co-Founder Makes a Major Political Donation
In a related development, Ripple co-founder Chris Larsen has donated $10 million in XRP to Vice President Kamala Harris’s campaign election. This donation cements his position as one of the largest individual donors in the crypto space for Harris’ political aspirations.
Larsen’s involvement in US politics is part of a growing trend in crypto leaders dipping their feet into the political world. The donation comes at a time when the US regulatory environment for digital assets is still uncertain.
In his remarks, Garlinghouse said Larsen is entitled to support any political candidate of his choosing, but the strategy is to push through pro-crypto policies on all fronts. While the court case against the SEC for Ripple remains ongoing, its impact on the crypto world and in politics keeps moving upward.
The trend so far since the start of this case shows that the court’s final decision would have an impact on cryptocurrency regulation and adoption in the years to come within the United States.
