XRP News: SEC Appeal Unlikely to Affect XRP’s Legal Status, Says Ripple’s Top Attorney

• Ripple’s top lawyer, Stuart Alderoty, stated that XRP’s non-security status will not change, even if the SEC appeals the recent court ruling.

• Judge Analisa Torres ruled that secondary sales of XRP are not securities, which has set an important precedent in the crypto industry.

Ripple’s top legal counsel, Stuart Alderoty, has made it clear that XRP’s classification as a non-security will remain intact, even if the U.S. Securities and Exchange Commission (SEC) decides to appeal the recent court ruling. This statement comes after Judge Analisa Torres ruled that secondary sales of XRP are not securities, a decision that has set a significant precedent in the crypto industry.

What if the SEC appeals the @ripple case? @s_alderoty @JWVerret pic.twitter.com/xoaAAewjcy

— Digital Asset Investor (@digitalassetbuy) August 15, 2024

SEC’s Potential Appeal

In a recent conversation with securities law professor J. W. Verret, Alderoty raised the possibility of the SEC seeking a review of the decision. He said that he would not be shocked if the regulatory body decided to contest the judgment. But he stressed that XRP is legal tender and its legal status will not be affected by any appeal.

 “That is the law of the land, and that does not change even if the SEC appeals. ” Alderoty said.

With the ruling by Judge Torres, Ripple, and the crypto world have gained some guidance on the difference between primary sales, which were considered securities, and secondary sales, which were not. This differentiation is quite significant for the legal framework of digital assets in the United States. 

Ripple has been in a legal tussle with the SEC for quite some time now, with the latter accusing Ripple of conducting unregistered securities sales through the sale of XRP. The recent judgment has been seen as a partial victory for Ripple, particularly in regard to secondary market sales. Ripple has not been deterred as it was ordered to pay penalties of $125 million; it considers the outcome as a victory over the regulatory agency. 

Alderoty expanded on Ripple’s stand in an interview with CNBC, stating that the SEC failed in every important aspect of the case. He noted that the agency had sixty days to appeal the case but was optimistic that the central position would not be overturned by the SEC. 

Alderoty Criticizes SEC’s Approach

The Ripple case has received a lot of attention not only because of the effects it has on XRP but also because it may set a precedence for other legal disputes in the crypto sphere. Bloomberg’s senior litigation analyst, Elliott Stein, has stated that the Ripple case may be beneficial to Coinbase’s legal struggle with the SEC. Similar sentiment has been expressed by many within the industry who consider the ruling as a turning point in the battle for legal certainty in the United States.

Alderoty also discussed the potential ramifications of the ruling, noting that it would be a “tremendous blow” to the cryptocurrency industry. He criticized the SEC’s approach, stating that the agency’s hostile posture towards the crypto industry had shifted its focus away from its basic functions of investor protection and market integrity. In light of this recent legal victory for Ripple, Alderoty says that the industry should now be able to shift its attention towards the development of new technologies.