In a recent interview with CryptoLaw, Ripple’s Chief Legal Officer (CLO) Stuart Alderoty shared insights on the ongoing Securities and Exchange Commission (SEC) lawsuit against Ripple (XRP). He expressed confidence in the company’s legal standing. Alderoty’s comments came after Judge Analisa Torres’ gave final judgment in the case.
Ripple’s Stuart Alderoty Points to Low 10% Reversal Rate in SEC Appeals
Alderoty highlighted a crucial statistic that could play a pivotal role in the case’s future. He stated:
Statistically, the courts of appeal, particularly the Second Circuit where this case [SEC v. Ripple] could go, reverses lower courts less than 10% of the time.
This low success rate for appeals suggests that the SEC might face significant challenges if it decides to contest the current XRP ruling.
Source: X
The CLO’s confidence stems not only from these statistics but also from Judge Torres’ meticulous handling of the case. Alderoty believes that the judge’s careful treatment of all issues makes it unlikely for any potential SEC appeal to succeed.
Judge Torres recently issued the final judgment in the SEC v. Ripple case, resulting in a mixed outcome for both parties. The court imposed a $125 million fine on Ripple, significantly less than the SEC’s proposed $2 billion penalty. Additionally, the judge denied the SEC’s request for disgorgement and prejudgment interest.
The ruling also included a permanent injunction prohibiting Ripple from selling XRP to institutions in the future without proper registration. This decision has sparked discussions about the classification of cryptocurrencies and the regulatory landscape for digital assets.
Legal Analysts Speculate on Potential SEC Appeal
While Alderoty hopes the SEC will not appeal the decision, he acknowledges the possibility. Legal experts speculate that the SEC might challenge aspects of the ruling, particularly those related to programmatic sales and disgorgement.
Alderoty maintains that regardless of whether the SEC appeals, the current law states that XRP itself and secondary market trading of the token are not considered securities. This clarification provides some legal certainty for XRP holders and traders.
The ongoing legal battle continues to affect XRP’s price market performance. The cryptocurrency recently lost key support at $0.57 and currently trades at $0.56.
XRP/USD Daily Price Chart. Source: TradingView
Market analysts suggest that XRP price could face further decline, potentially dropping to around $0.5195 before finding support.
Despite the legal challenges, Ripple remains optimistic about its future. The company has indicated its intention to pay the $125 million penalty and settle the case. Alderoty mentioned that they are eyeing a resolution in the XRP lawsuit within the next 24 days.
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