Ripple’s Chief Legal Officer, Stuart Alderoty, has criticized the U.S. Securities and Exchange Commission’s (SEC) recent legal move, calling it a surprising turn in the ongoing dispute over XRP. The reaction comes as the SEC filed a new appeal, challenging an earlier ruling that declared XRP was not a security under current U.S. regulations. Alderoty’s response reflects the frustration within Ripple’s camp.
The SEC’s appeal comes just two months after Judge Analisa Torres ruled that Ripple should be fined $125 million, far less than the $2 billion the SEC initially demanded. The appeal is seen as a desperate attempt by the SEC to overturn its loss, adding another layer of complexity to the legal fight. Ripple’s CLO labeled the move as “disappointing” but not unexpected, given the SEC’s past actions.
Ripple’s frustration stems from the lack of fraud or loss claims in the original case, which led to a significant victory for Ripple. The SEC’s latest step has sparked backlash within the crypto community. Alderoty argues that the agency is pursuing baseless lawsuits under Gary Gensler’s leadership rather than providing clear guidelines for the crypto industry. He contends this legal strategy further damages the SEC’s credibility. Ripple is now considering a cross-appeal, signaling that it is prepared for another round in court.
Key timelines have emerged for the case’s next phases. According to attorney Fred Rispoli, the SEC’s briefing is expected by December 2, 2024, or early January 2025, if an extension is granted. If Ripple proceeds with a cross-appeal, its opening brief will coincide, and opposition briefs are expected by February 2025. The appellate court ruling might not arrive until early 2026, with oral arguments likely in late 2025.
Despite these delays, Ripple’s CLO is adamant about fighting back. He emphasized that Ripple is ready to confront the SEC’s appeal, once again positioning the company as a defender of the broader crypto industry.
