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In the ongoing legal saga between Ripple and the U.S. Securities and Exchange Commission (SEC), the XRP case continues to make headlines. Ripple’s Chief Legal Officer, Stuart Alderoty, recently addressed the possibility of the SEC appealing the $125 million final judgment, a decision that could have significant implications for the broader cryptocurrency industry.
The XRP case has been closely watched by the entire crypto community. Last week, a final judgment was issued by District Judge Analisa Torres, who partially granted the SEC’s motion for remedies against Ripple, including a $125 million civil penalty. Despite this, Ripple’s legal team, led by Alderoty, feels that the outcome was a victory for both Ripple and the cryptocurrency industry as a whole.
Alderoty stated that Ripple has been steadfast in its defense since the SEC first filed its lawsuit nearly four years ago. The company made it clear from the beginning that their defense was not just for themselves but for the entire crypto industry.
“I think they [SEC] lost everything that was important to them. Trying to establish that a token itself — in this case, XRP — can be considered a security was soundly rejected by the court.” Alderoty added.
One of the most critical aspects of the XRP case was the SEC’s argument that XRP could be considered a security. Alderoty emphasized that the court’s rejection of this notion was crucial. He explained that the court ruled that a token, in this case, XRP, is never a security in and of itself. This ruling provides much-needed clarity for the crypto industry, as it establishes that XRP is not a security, a decision that Alderoty described as now being “the law of the land.”
Alderoty further explained that while the court found certain historical sales of XRP, dating back to 2015, should have been registered under securities laws, this decision was something Ripple respected.
“What the judge did find is that certain historical sales, beginning around 2015, the way that those sales were packaged with sophisticated third parties, should have been registered under the securities laws. And that’s the piece of the decision that we respect.”
Regarding the $125 million fine imposed by the court, Alderoty said that Ripple plans to pay it using cash from their balance sheet.
“That’s something that we will pay with cash off our balance sheet and look forward to moving forward.” Alderoty added in his statement.
XRP Case: Is the Legal Battle Over?
Alderoty was asked whether this final judgment in the XRP case meant the end of Ripple’s legal battle with the SEC. He responded that, in Ripple’s view, the case is finally over. The company plans to pay the fine within the 30 days specified by the court, after which they hope to focus entirely on growing their business.
However, Alderoty acknowledged that the SEC still has the option to appeal the court’s order. He noted that the SEC has 60 days to decide whether to pursue an appeal. Despite this, Ripple’s legal chief made it clear that the company is primarily focused on the finality of the judgment and is eager to continue expanding its operations both globally and domestically.
The possibility of an appeal by the SEC remains a critical question. When asked about this, Alderoty expressed his hope that the SEC would choose not to appeal the decision. He argued that if the SEC is a rational actor and if the Biden-Harris administration is genuinely interested in resetting its stance on cryptocurrencies, there should be no appeal. He urged that everyone should move on and focus on the future.
XRP Case: SEC’s Approach and Methods
Alderoty also criticized the SEC’s approach, suggesting that their actions have skewed their core mission.
“This war on crypto has really skewed the SEC’s core mission and skewed their commitment to kinda stick to their lanes in their jurisdiction. What we need as a country is to hit the reset button, and what we really should be focusing on is creating clear laws, rules, and regulations so this industry can thrive in the United States just as it is thriving outside the United States.”
The XRP case has undoubtedly been a landmark moment for the cryptocurrency industry, and the final judgment could set a precedent for how digital assets are regulated in the future. Whether the SEC decides to appeal or not, the outcome of this case will have lasting implications for Ripple, the broader crypto community, and the future of digital assets in the United States.
For more news and updates on the XRP case and the general cryptocurrency industry, stay tuned to TurkishNY Radio.
