XRP Lawsuit: Stuart Alderoty Slams US SEC As Ripple Weighs Cross Appeal

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As a seasoned crypto investor with a decade of experience under my belt, I’ve witnessed more than my fair share of regulatory battles and market volatility. The ongoing XRP lawsuit between Ripple and the SEC is no exception, and it seems to be escalating rapidly.

In a recent turn of events, Ripple‘s top legal executive, Stuart Alderoty, expressed his discontent towards the U.S. Securities and Exchange Commission (SEC), after the regulatory body announced its intention to file an appeal.

Ripple is considering submitting a counter-appeal, which may challenge both the court decision regarding institutional sales and the $125 million fine that was levied against them in August.

XRP Lawsuit: Stuart Alderoty Slams US SEC

In a more recent article from X, Ripple’s Chief Legal Officer, Stuart Alderoty, discussed the SEC’s intention to challenge certain parts of the court’s verdict. As stated by Eleanor Terret of Fox News, if Ripple chooses to appeal, it must notify the court by October 18th. According to her reporting, potential grounds for Ripple’s appeal could stem from Judge Torres’ ruling that XRP sales to institutional investors violated securities laws and the subsequent $125 million fine.

If Gensler and the SEC acted sensibly, they might have resolved this case earlier. However, it appears that this action has not served to safeguard investors but rather undermined the trust and standing of the SEC.

Somehow, they still haven’t gotten the message: they lost on everything that…

— Brad Garlinghouse (@bgarlinghouse) October 2, 2024

As a crypto investor, I find myself closely watching the legal proceedings unfolding at the U.S. Court of Appeals for the Second Circuit, as my interests are now intertwined with a case that has garnered cross-appeal.

According to Alderoty’s statement, he expressed disappointment in the SEC’s decision to initiate a lawsuit against Ripple, considering the complaint as a source of great embarrassment for the commission. He highlighted that the court had rejected accusations of negligence and fraud against Ripple, as well as any claims of investor harm. Despite the strong stance taken by the US SEC, Stuart Alderoty emphasized that Ripple would persist in its defense, especially considering the broader implications for other cryptocurrency companies.

Agency’s Appeal and Brad Garlinghouse Response

The SEC has filed a notice of appeal in the XRP Lawsuit with only a few days left before the October 7 deadline, indicating its determination to contest Judge Torres’ ruling from July 2023. In this ruling, the court determined that programmatic sales of XRP through exchanges were not considered securities transactions, but sales to institutional investors did breach securities laws. The reasons behind the SEC’s decision to appeal may involve either, or both, of these points, though further details have yet to be disclosed.

In response to the verdict, Brad Garlinghouse, CEO of Ripple, additionally expressed that the SEC has been frittering away taxpayer money on what they call a “futile battle.” Garlinghouse further emphasized that the SEC has not acted in the best interest of investors but rather caused harm to themselves by stating “I’m not surprised. I’m angry.” He also reiterated that XRP‘s classification as a non-security for programmatic sales remains intact, despite the Securities and Exchange Commission’s appeal.

Apart from Alderoty’s observation about the timing, it’s worth mentioning that Gurbir Grewal, the SEC’s Director of Enforcement, resigned just an hour before the SEC filed its appeal in the XRP Lawsuit. This has sparked further speculation regarding the Securities and Exchange Commission’s future leadership, as Chair Gary Gensler has been facing criticism over his management of cryptocurrency-related issues and enforcement.

Ripple’s top executives, including Stuart Alderoty and Brad Garlinghouse, along with the rest of their leadership team, have repeatedly criticized the Securities and Exchange Commission for its management of the case, alleging that the agency has acted inappropriately. This critique arises as Grewal steps down from the agency, prompting questions about whether there will be shifts in the US SEC’s strategy when it comes to regulating cryptocurrencies.

XRP Price Tanks Over 10% Post Appeal

Following the United States Securities and Exchange Commission’s announcement of an appeal in the XRP lawsuit, the token’s value has dropped noticeably. Currently, a single XRP is being traded at $0.5331, representing an 11% fall from its 24-hour peak price.

Despite this dip,  cryptocurrency commentator CredibleCrypto highlighted Bitwise’s recent filing for an XRP exchange-traded fund (ETF), signaling growing interest in the asset.

Indeed, I’ve noticed both the ongoing SEC appeal regarding the Ripple case and, more recently within the past 12 hours, a surprising development: Bitwise Investments has submitted an application for an Exchange-Traded Fund (ETF) based on XRP. This seems to have escaped the attention of many in the cryptocurrency community on Twitter.
XRP will be the next approved ETF after $BTC and $ETH imo.
As far as narratives go, I…
— CrediBULL Crypto (@CredibleCrypto) October 2, 2024

 

Based on their analysis, it was proposed that XRP might follow Bitcoin and Ethereum as the next cryptocurrency to gain ETF approval, even amidst ongoing legal proceedings. In the long run, CredibleCrypto suggests, this legal appeal is not expected to significantly impact XRP’s overall market trend.

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2024-10-03 04:18