The ongoing legal confrontation between Ripple and the United States Securities and Exchange Commission (SEC) has reached new heights, as Ripple’s Chief Legal Officer (CLO), Stuart Alderoty, has vocally criticized the SEC’s latest legal maneuver. This development marks a pivotal moment in the ongoing dispute surrounding XRP and Ripple, the blockchain-based payment firm.
SEC’s Appeal Sparks Reaction from Ripple’s Stuart Alderoty
The protracted legal battle between the US SEC and Ripple concerning XRP has taken an unexpected turn. On Wednesday, the SEC filed for an appeal against the court’s earlier ruling, which determined that XRP does not qualify as a security under existing legislation. This appeal comes less than two months after Judge Analisa Torres issued her final judgment, imposing a $125 million fine on Ripple, significantly lower than the $2 billion initially sought by the SEC.
The SEC’s recent move has been met with significant criticism from the broader community. Ripple’s CLO, Stuart Alderoty, has publicly expressed his dissatisfaction with the SEC’s decision to appeal, characterizing it as “disappointing.” Alderoty’s remarks reflect the mounting frustration within Ripple regarding the ongoing legal proceedings.
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Despite his disappointment, Alderoty was not surprised by the SEC’s latest approach, as he had anticipated this outcome. According to Alderoty, the Court had previously rejected the SEC’s argument that Ripple had acted irresponsibly, given the absence of fraud claims, victims, or losses. He believes that the Commission’s decision to pursue an appeal only exacerbates its already embarrassing situation.
Alderoty further criticized the SEC for what he perceives as a relentless legal assault on the cryptocurrency industry under the leadership of its current chairman, Gary Gensler. He suggests that the SEC’s actions lack transparency and do not align with faithful law enforcement. Nevertheless, Ripple remains committed to responding to this latest move and is considering whether to file a cross-appeal. “Regardless of the path we choose, the SEC’s lawsuit has been irrational and misguided from the outset, and we are prepared to demonstrate this once more in the appellate court, leading the charge for the industry,” Alderoty asserted.
Significant Timelines in the SEC vs. Ripple Case
As the legal battle continues to unfold, Fred Rispoli, an experienced counselor and attorney, has highlighted several upcoming developments and key dates to keep an eye on. According to Rispoli, the SEC is expected to submit a briefing by December 2, 2024, with the possibility of a 30-day extension pushing this date to January 1, 2025.
If Ripple decides to pursue a cross-appeal, its opening brief is anticipated to coincide with the aforementioned timeframe, with opposition briefs likely due by February 2, 2025. Rispoli speculates that Ripple may seek an extension, potentially extending this deadline to March 2, 2025. Additional critical dates outlined by the attorney include reply briefs by the end of March 2025, oral arguments scheduled between September and October 2025, and a ruling from the Second Circuit Court of Appeals expected between January and April 2026.
Amidst this legal turmoil, XRP is currently trading at $0.5170, reflecting the ongoing uncertainty surrounding the case.
