The post Ripple’s Chief Legal Officer Slams SEC’s Use Of ‘Crypto Asset Securities’: ‘Stop Trying to Deceive Judges’ appeared first on Coinpedia Fintech News
Ripple’s Chief Legal Officer, Stuart Alderoty took to social media on September 2 and expressed concerns about the SEC’s negligence. Taking to his X handle, he wrote, “The term ‘crypto asset security’ is nowhere to be found in any statute—it’s a fabricated term with no legal basis. The SEC needs to stop trying to deceive judges by using it.”
A federal judge recently ordered Ripple Labs to pay the SEC approximately $125 million in penalties, significantly lower than the $2 billion the agency initially sought in a legal battle that began around four years ago. The penalty is related to charges of improperly selling its XRP token to institutional investors.
The term 'crypto asset security' is nowhere to be found in any statute—it's a fabricated term with no legal basis. The SEC needs to stop trying to deceive judges by using it. pic.twitter.com/CyNbUbeoYM
— Stuart Alderoty (@s_alderoty) September 2, 2024
After this, Stuart expressed satisfaction with the final outcome of the lengthy legal battle with the SEC. He said that Ripple was determined to defend the case not just on its own behalf, but also on behalf of the entire crypto industry. Alderoty criticized the SEC’s current administration for taking an anti-crypto stance and engaging in what he described as a “war on crypto” through the courts.
Regarding the $125 million fine imposed by the court, Alderoty acknowledged the decision, stating that the court found certain historical sales should have been registered under securities laws. However, he pointed out that the judge dismissed the SEC’s $2 billion demand, recognizing that Ripple did not act recklessly or with intent to defraud. Ripple is focused on the clarity and finality this ruling provides, which he believes is beneficial not only for Ripple but for the broader crypto industry as well.
Last July, U.S. District Judge Analisa Torres in Manhattan granted Ripple a partial victory, ruling that XRP sales on public exchanges were not considered unregistered securities offerings. The judge later rejected the SEC’s request to appeal that decision.
