Ripple’s CLO Criticizes US SEC’s Latest Appeal, Questions Legal Strategy

by

As a seasoned crypto investor with a keen eye for regulatory developments and a knack for navigating the ever-evolving landscape of digital assets, I find myself deeply engrossed in the ongoing saga between Ripple and the SEC. The recent move by the SEC to appeal the court’s decision regarding XRP is a disappointing yet predictable turn of events.

In simpler terms, Stuart Alderoty, Ripple‘s top lawyer, publicly criticized the U.S. Securities and Exchange Commission (SEC) for their latest action, which represents a notable escalation in the ongoing argument regarding XRP and the blockchain payments company.

US SEC’s Appeal Move Receives Backlash From Stuart Alderoty

In a significant shift in their ongoing legal dispute, the U.S. Securities and Exchange Commission (SEC) submitted an appeal on Wednesday regarding the previous court decision stating that Ripple’s XRP does not fall under the category of securities according to existing laws.

It’s important to point out that the agency chose to appeal the ruling of the Second Circuit Court of Appeals just two months after Judge Analisa Torres made her final decision in the extended court case. In this case, Ripple was penalized with a $125 million fine instead of the initial $2 billion requested by the SEC.

So far, the recent progress has been met with strong criticism from a wide range of people. Recently, Stuart Alderoty, Ripple’s Chief Legal Officer, expressed his dissatisfaction with the SEC’s decision to appeal, calling it “disappointing.” Alderoty’s comments suggest growing discontent within the company over this issue.

Despite the Ripple CLO expressing disappointment with the recent strategy, it didn’t come as a shock to him because he had anticipated this result earlier. As Alderoty points out, since the court previously dismissed the agency’s claim that Ripple acted recklessly due to lack of fraud allegations, no reported victims or financial losses, the decision merely adds to the Commission’s existing shame and humiliation.

Alderoty expressed concerns about the U.S. Securities and Exchange Commission (SEC), arguing that instead of diligently enforcing the law as intended, the regulatory body under the leadership of its chairman, Gary Gensler, has been more focused on launching a series of legal battles against the crypto industry. This criticism implies a perceived lack of transparency in their approach.

Despite Ripple considering a cross-appeal following the lawsuit by the SEC, the Chief Legal Officer (CLO) has emphasized the company’s determination to address this situation accordingly. In essence, Alderoty declared that the SEC’s lawsuit, from its inception, has been both irrational and misguided, and they stand ready to demonstrate this once more in the appellate court, continuing to set an example for the industry.

Key Timelines In SEC Vs. Ripple Case

In the midst of the ongoing lawsuit, Fred Rispoli, who serves as both Counselor and Attorney, has highlighted some significant future events and key dates that warrant attention. Rispoli predicts that a report from the SEC could be issued as early as December 2, 2024, with a possible extension to January 1, 2025 if allowed within a reasonable 30-day timeframe.

If Ripple chooses to file a cross-appeal, the initial arguments will likely be presented near the specified date, with opposing briefs anticipated around February 2, 2025. Rispoli hypothesizes that the payment company could opt for an extension, potentially pushing the date back to March 2, 2025.

Among the significant deadlines highlighted by the lawyer are submitting response briefs by the end of March 2025, a court hearing scheduled anywhere between September and October 2025, and a verdict from the Second Circuit Court of Appeals expected to be issued anytime between January and April 2026.

Ripple’s CLO Criticizes US SEC’s Latest Appeal, Questions Legal Strategy

Read More

2024-10-04 10:41