Ripple’s Legal Officer Predicts Key Scenarios for SEC Case Outcome

Stuart Alderoty, Ripple’s Chief Legal Officer, recently shared his thoughts on potential outcomes of Ripple’s ongoing legal dispute with the U.S. Securities and Exchange Commission (SEC). In a recent post on X, Alderoty discussed several possibilities as the case heads to the U.S. Second Circuit Court of Appeals.

Ripple’s Confidence in Judge Torres’ Ruling

Alderoty believes the appellate court will either uphold or expand upon the decision made by Judge Analisa Torres. He sees the SEC’s hope for a remand as unlikely, stating, “The best the SEC can hope for (and it’s a remote hope) is a remand.” Ripple’s legal stance remains firm, particularly after Judge Torres clarified that her initial ruling stood during the SEC’s failed interlocutory appeal. This includes Ripple’s significant defenses, such as the Fair Notice argument.

The Role of Fair Notice and Potential Challenges for the SEC

The Fair Notice argument questions whether a person of “ordinary intelligence” could have reasonably known what was prohibited by law. If the case were remanded, Ripple would have the opportunity to bring this defense back to court. Alderoty suggests this could create a difficult situation for the SEC, which would be forced to argue that Judge Torres failed to meet the standard of “ordinary intelligence” when she ruled in favor of Ripple. He called this scenario “awkward” for the SEC.

In a humorous twist, Alderoty compared the case to classic literature and film. He likened SEC Chairman Gary Gensler to Captain Ahab from Moby Dick, obsessively chasing Ripple like Ahab did the whale. He also compared the current legal situation to the courtroom comedy My Cousin Vinny, adding a touch of levity to an otherwise intense battle.