Stuart Alderoty, Ripple Labs’ Chief Legal Officer, has vehemently criticized the U.S. Securities and Exchange Commission’s (SEC) ongoing legal actions against the cryptocurrency industry.
Alderothy’s remarks come on the heels of reflections marking a year since Judge Analisa Torres’ pivotal decision in the SEC v. Ripple lawsuit, which determined that Ripple’s XRP token is not a security.
“Some reflections as we approach the one year anniversary of Judge Torres’ Summary Judgment decision in the SEC v Ripple lawsuit…it was a watershed moment to find as a matter of law, a token – in this case, XRP – in and of itself, is not a security,” Alderoty tweeted on Saturday.
He further underscored that this ruling not only vindicated Ripple but also set a precedent that has reverberated across similar cases, including the recent scrutiny faced by Binance.
The lawyer then criticized the SEC’s “gross overreach” and failure to uphold legal standards under Chair Gary Gensler. He pointed to the judiciary’s role in reining in the SEC’s aggressive stance, though he expressed frustration at the prolonged legal battles that seek clarity on a token-by-token basis, deeming them unacceptable.
“The SEC’s continued efforts to entangle Ripple and the broader industry in litigation are futile,” Alderothy asserted, echoing thoughts by Ripple CEO Brad Garlinghouse.
He went on to suggest that policymakers from both political spectrums are increasingly impatient with the lack of legislative progress on cryptocurrency regulation, noting that the United States lags behind its global counterparts in fostering regulatory certainty.
Despite ongoing proceedings concerning remedies in their case, Alderothy affirmed confidence in the court’s definitive stance that XRP is not a security, a position even acknowledged by the SEC itself in court. He urged stakeholders not to be distracted by the SEC’s tactics, predicting that time is running out for the agency to sustain its aggressive litigation strategy.
“Don’t be distracted by the SEC’s continued efforts to mire Ripple and the industry in the litigation trenches – that runway is running out for the SEC. Ripple and the entire industry has and will emerge stronger, long after Chair Gensler is gone.” He added.
Notably, the SEC’s pursuit of Ripple has been contentious, marked by the agency’s request in March 2024 to impose significant fines amounting to $2 billion in March. This request was, however, contested by Ripple, advocating for a reduced penalty of $10 million.
That said, while the parties have not yet agreed on a settlement date, speculation that it could arrive sooner than anticipated, with Ripple having already bagged many wins and the prospects of an Appeal by the SEC low.
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