Ripple CLO Says SEC’s Appeal Will Favor Ripple’s Victory

Stuart Alderoty, Ripple's chief legal officer (CLO), Stuart Alderoty, says an appeal by the US Securities and Exchange Commission (SEC) would consolidate Ripple's victory.

The CLO believes a favorable outcome will follow the regulator's appeal to the recent court's ruling. The CLO's remark follows several debates regarding the SEC's potential appeal on its case with Ripple following the blockchain firm's win.

SEC's Appeal Could Amplify Ripple Win

Stuart Alderoty was featured in an episode of TechCrunch's Chain Reaction" podcast. The Ripple CLO maintained that XRP doesn't make up an investment contract.

30+ years as a lawyer, and crypto is, without a doubt, the most fascinating industry I've been a part of.

Thank you @jacqmelinek for having me on to discuss what the lawsuit decision means, where the SEC has jurisdiction (and more importantly where it doesn't), and much more. https://t.co/lozorZeTyL

- Stuart Alderoty (@s_alderoty) July 25, 2023

He said the San Franscisco-based blockchain company, Ripple, will always succeed in the face of an appeal by the SEC.

Alderoty mentioned that the court's decision on July 13 is just an application of the law regarding the position of XRP. He believes that even if the regulator appeals the ruling for XRP's win, it will affirm the token's status as a non-security.

The legal officer stated:

We think the judge got that right, and we think that was a faithful application of the law, and I think a court of appeals will not only affirm that but maybe even amplify that to even a greater extent."

Further, Alderoty mentioned that Judge Torres' ruling stands as a precedent for other judicial authorities. It will highlight the US SEC's misguided regulatory approach to the crypto industry.

The CLO said:

Our case and the decision rendered by judge [Torres] will provide comfort to other judges that the SEC is just misguided."

Also, Alderoty's positive sentiment indicates Ripple's determination and commitment to laying out regulatory clarity within the crypto industry.

Following Ripple's recent partial win over the SEC, XRP has been soaring higher with massive rallies. The token witnessed over 60% surge a few hours after the court's decision on July 13.

The SEC Potential Appeal Against XRP Ruling

The SEC has indicated dissatisfaction over Judge Torres' decision on its case with the blockchain firm Ripple. The court ruled that all XRP sales to retail investors on public exchanges are not securities.

In another lawsuit against Terraform Labs and its founder, Do Kwon, the SEC said Judge Torres' XRP ruling did not reflect one made in good faith, asking the court to disregard it.

SEC lawyers mentioned:

Respectfully, those portions of Ripple were wrongly decided, and this Court should not follow them."

Terraform Labs filed to dismiss the case, citing Judge Torres' ruling as a precedent for the crypto industry. However, the securities regulator made another move to cancel such a motion. The regulator hinted at a possible move to appeal the XRP ruling.

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