u.today
Ripple's Chief Legal Officer Stuart Alderoty has once again taken aim at the U.S. Securities and Exchange Commission (SEC), calling attention to the agency's regulatory approach. In a recent tweet, Alderoty highlighted the SEC’s tactics, characterizing them as "lawless."
According to Alderoty, Ripple exposed these tactics early in their legal battle, bringing to light significant issues with the SEC's enforcement strategy.
Ripple exposed the SEC’s lawless tactics early on. As the court said in our case: ‘The SEC is adopting its litigation positions to further its desired goal, not out of a faithful allegiance to the law.’ The question isn’t whether the SEC under Gensler is rogue—it is. The… https://t.co/4VToaTCeMT pic.twitter.com/Q6s3gTINwr
— Stuart Alderoty (@s_alderoty) December 14, 2024
The Ripple CLO highlighted that the court in Ripple's case observed the SEC's tendency to adopt litigation positions that further its desired goals rather than out of a faithful allegiance to the law.
Alderoty stated that the question is not whether the SEC under its current chair Gary Gensler is acting rogue — it is, the real issue is how to hold the SEC accountable for its actions.
Alderoty's comments mirror widespread criticism of the SEC's approach to regulation. Critics, including industry leaders and legal experts, have accused the agency of lacking clarity in its rules and pursuing enforcement actions without providing clear guidance.
Ripple sets precedent in crypto space
Ripple claimed victory in its legal battle with the SEC after the Court ruled in its favor in July 2023, stating unequivocally that XRP is not a security.
The decision dealt a big setback to the SEC's broader enforcement campaign against crypto assets, giving Ripple and the crypto industry significant momentum in their push for regulatory clarity.
In October, the SEC announced its intention to appeal the Court's decision that certain prior XRP distributions by Ripple were securities. It is important to note that the SEC is not about whether XRP, in and of itself, is a security. In the same month, Ripple filed Form C, outlining the issues it intends to bring in its cross-appeal.
Given that the parties are appealing the Court's judgment, Ripple deposited the $125 million set aside for remedies in an escrow account.
The appeal and cross-appeal briefing in the Ripple case could last through the first half of 2025, followed by an argument before the appellate court, most likely in the fall of 2025, and a final ruling from the court thereafter.