Ripple’s Chief Legal Officer, Stuart Alderoty, has voiced his frustration with the U.S. Securities and Exchange Commission (SEC) following the agency’s recent notice of appeal.
Ripple is now contemplating filing a cross-appeal, potentially targeting both Judge Analisa Torres’ ruling on institutional sales or the $125 million penalty imposed in August.
XRP Lawsuit: Stuart Alderoty Slams US SEC
In a recent X post, Ripple CLO Stuart Alderoty addressed the SEC’s decision to appeal parts of the court’s ruling. In this case, the company has until October 18 to let the court know if it will appeal the decision, as per Fox Journalist, Eleanor Terret. According to her, the aspects of Ripple’s appeal could be based on Judge Torres’ findings that the XRP sales to institutional investors were unlawful under securities laws and the $125 million fine.
The cross-appeal would be wrapped into the same case now heading to the U.S. Court of Appeals for the Second Circuit. Alderoty stated that he was dissatisfied with the decision of the SEC to pursue the litigation, adding that the complaint was a complete embarrassment to the commission.
He noted that the court dismissed allegations of negligence on the part of Ripple, as well as lack of fraud and harmed investors. As much as the US SEC has been adamant, Stuart Alderoty was insistent that Ripple would continue its defense and more so for the rest of the cryptocurrency companies.
Agency’s Appeal and Brad Garlinghouse Response
The SEC filing of its notice of appeal in the XRP Lawsuit is just days before the October 7 deadline, signaling its intent to challenge Judge Torres’ ruling from July 2023. In that ruling, the court found that while XRP’s programmatic sales through exchanges were not securities transactions, sales to institutional investors did violate securities laws. The reason to appeal to the Securities and Exchange Commission can therefore be either or both of these points though more details have not been confirmed yet.
In his response to the decision, Ripple CEO Brad Garlinghouse also stated that the SEC has continued to squander taxpayers’ funds on what they described as a “losing fight.” Garlinghouse further noted that the SEC had not served the interest of investors but instead harmed itself by stating “I’m not surprised. I’m pissed.” He also pointed out that XRP’s status as a non-security for programmatic sales remains unchanged despite the Securities and Exchange Commission’s appeal.
Alderoty also noted the timing of Gurbir Grewal’s resignation, the SEC’s Director of the Division of Enforcement, who stepped down one hour before the SEC filed its appeal on the XRP Lawsuit. Grewal’s departure has raised more questions on the future of the Securities and Exchange Commission and its leadership since Chair Gary Gensler has been under fire over the handling of cryptocurrency and enforcement.
Both Ripple CLO Stuart Alderoty, Brad Garlinghouse, and the rest of the leadership have constantly lambasted the Securities and Exchange Commission for its handling of the case, accusing the agency of being in bad faith. This comes as Grewal departs from the agency, leaving room for speculations about whether or not there will be changes to the US SEC’s approach to enforcing laws in the crypto space.
Final Thoughts
Stuart Alderoty’s frustration with the SEC’s ongoing appeal in the XRP case reflects Ripple’s growing impatience with the regulator’s persistence in litigation, despite the mixed court rulings. The potential for a cross-appeal from Ripple, challenging the court’s decision on institutional sales and the $125 million fine, could further complicate the legal battle.
Ripple’s leadership, particularly Alderoty, and CEO Brad Garlinghouse, views the SEC’s actions as wasteful and harmful to the cryptocurrency industry, believing the agency is misusing taxpayer funds in pursuit of an unwinnable case. This continued legal wrangling underscores the broader regulatory challenges facing the crypto industry in the U.S., as tensions between innovators and regulators remain high.
Article Source: CoinGape
