- Ripple CLO Stuart Alderoty dismissed the SEC’s appeal as “noise” and a repeat of rejected arguments.
- The SEC is not challenging the ruling that XRP is not a security, focusing instead on Ripple’s XRP sales.
- Ripple remains confident, framing the appeal as part of its fight against regulatory overreach in crypto.
Ripple’s Chief Legal Officer, Stuart Alderoty, had a sharp response to the SEC’s latest appeal in their long-running legal battle. Yesterday, as expected, the U.S. Securities and Exchange Commission (SEC) filed its opening appeal brief, reigniting the legal showdown that Ripple largely won earlier this year.
Dismissing the Appeal as a “Rehash of Old Arguments”
Right after the SEC’s filing, Alderoty didn’t hold back. He dismissed the appeal as nothing more than a rehash of arguments that the district court had already thrown out. In his words, the SEC’s case lacks substance and might even be abandoned when the next administration steps in.
Ripple’s CLO struck a confident tone, reassuring stakeholders that the company would respond to the SEC’s brief in due course. He even went a step further, calling the lawsuit “noise” that’s more of an irritation than a legitimate threat to Ripple’s operations—which, according to him, are thriving despite the drama.
A Shift Toward Pro-Innovation?
Alderoty also hinted at brighter days ahead for the U.S. regulatory landscape. He predicted an era of pro-innovation policies that could bring clarity and relief to the crypto industry. His words seemed designed to reassure Ripple investors and the broader XRP community that the ongoing legal wrangling isn’t derailing the company’s progress.
Ripple’s Take on the SEC Appeal
Alderoty shared a link to Ripple’s detailed commentary, offering insights into the SEC appeal for the crypto community. The document painted the SEC’s case as politically charged, noting that the regulator chose to appeal despite losing on all major issues in court.
Ripple, determined to stand its ground, framed this appeal as part of its broader fight against regulatory overreach. The stakes aren’t just about Ripple—they’re about defending the entire crypto space from unnecessary constraints.
What’s Not Being Appealed
Interestingly, neither Ripple nor the SEC is challenging Judge Analisa Torres’ landmark ruling that XRP itself is not a security. That’s a huge win Ripple continues to celebrate, aligning XRP with other crypto heavyweights like Bitcoin and Ethereum, which were also deemed non-securities.
Instead, the SEC’s appeal focuses on whether Ripple’s sales of XRP on exchanges and other token distributions qualify as “investment contracts” requiring securities registration. Ripple, for its part, is cross-appealing the court’s decision on institutional XRP sales, which went in the SEC’s favor.
A Legal Battle Far From Over
The SEC’s opening brief landed in the Court of Appeals for the Second Circuit yesterday, even though Ripple had requested a delay in filing. Ripple’s legal team remains confident, with Alderoty making it clear that the company intends to fight tooth and nail to defend itself and the broader crypto ecosystem.
A Final Thought
Ripple’s stance is bold, and its leadership isn’t shy about calling out the SEC for what it sees as overreach. For now, XRP holders can take solace in the clarity provided by Judge Torres’ ruling, even as the battle rages on.
