Ripple’s Chief Legal Officer Dismisses SEC’s Potential Appeal

Following the groundbreaking decision that determined XRP is not a security when sold to the general public on cryptocurrency exchanges but may be a security when sold to institutional investors, worries about a potential SEC appeal by the SEC emerged. Stuart Alderoty, the chief legal officer at Ripple, is unconcerned about the possibility of an appeal.

Alderoty is adamant that the court’s judgment was a “faithful application of the law” and that any hypothetical SEC appeal may potentially improve Ripple Labs’ position. He emphasized his certainty that the court of appeals will uphold and potentially strengthen the verdict in favor of Ripple in a recent TechCrunch podcast on July 26.

Judge Analisa Torres’ decision, which she announced on July 13, drew conflicting responses. However, it allowed opportunity for consideration as a security when given to institutional investors, but classifying XRP as not being a security for regular investors. The SEC then utilized its ongoing lawsuit against Do Kwon, the creator of Terraform Labs, to voice its displeasure with the decision and make a potential appellate appeal implication.

Alderoty, though, remains unwavering in his conviction that the court made the correct decision. He argued that XRP does not qualify as an investment contract and that the Ripple team is ready to take on any appeals that may be made.

Despite the confidence generated by the good decision, Alderoty underlined that the cryptocurrency industry still doesn’t have a reliable regulatory structure. He questioned the SEC’s “regulation by enforcement” strategy and said that the United States is lagging behind other countries in terms of its crypto legal framework. In order to create the conditions for a booming crypto business in the nation, he emphasized the need for “rational, comprehensive, and understandable” regulatory framework.

According to Cointelegraph statistics, XRP is currently worth $0.70, up roughly 43% in the previous month, but Alderoty is still wary about the regulatory environment in the future. He thinks that in order for the cryptocurrency sector to grow, the SEC must adhere to the law and provide a favourable regulatory climate.

Ripple’s Victory Offers Hope Amidst Regulatory Uncertainty

The recent legal victory for Ripple has given the cryptocurrency industry cause for optimism since it highlights possible weaknesses in how the SEC classifies cryptocurrencies. With XRP triumphing in the most recent decision, the field is now open for further cryptocurrency cases in which the SEC tries to classify digital assets as securities.

The XRP cryptocurrency does not meet the criteria for an investment contract, according to the legal team at Ripple, and they feel vindicated by Judge Analisa Torres’ decision. The ruling has given Ripple the much-needed assurance to take on any prospective SEC appeal since the business is confident in the legitimacy of their position.

The Terraform Labs case, which hinted at a likely SEC appeal, has generated discussion in the cryptocurrency community. Speculation regarding the regulator’s upcoming step has been further stoked by SEC Chair Gary Gensler’s dissatisfaction with the XRP decision. However, despite the ambiguity surrounding the appeal, Stuart Alderoty, the chief legal officer of Ripple, is steadfast in his conviction.

Alderoty cautions against complacency despite the victory providing a glimpse of optimism for the cryptocurrency business. He stresses the importance of establishing a comprehensive regulatory framework for cryptocurrencies in the U.S. to keep pace with other global jurisdictions. The country’s crypto industry has struggled to develop and is now behind its competitors abroad due to a lack of clear laws.

The sector is anxiously awaiting the resolution of the likely appeal as the price of XRP rises even higher. Regardless of the outcome, this case’s repercussions go beyond XRP and might influence other cases as well as the direction of U.S. crypto legislation in the future.