Stuart Alderoty Optimistic About Future SEC Leadership in Ripple Legal Battle
Stuart Alderoty, Ripple’s Chief Legal Officer, is hopeful that the future leadership of the U.S. Securities and Exchange Commission (SEC) could bring a positive shift to the ongoing legal battle faced by the company. He specifically looks towards the nomination of Paul Atkins by Donald Trump to lead the SEC, in the hopes that Atkins may adopt a more lenient stance towards crypto companies, potentially dismissing enforcement actions that are solely based on registration issues rather than fraud.
A Shift in Focus
During a discussion for XRP Community Day 2025 on January 28, Alderoty acknowledged the bureaucratic nature of the SEC and expressed optimism that under Atkins’ leadership, the commission might prioritize fraud-related cases over other regulatory issues.
“Litigation and regulation through enforcement are not the ideal paths for the country to pursue. I believe the new SEC leadership understands this, and I am cautiously optimistic that at some point in 2025, the ongoing case against Ripple will be voluntarily withdrawn,” Alderoty stated.
Impact on Ripple’s Legal Landscape
As the Senate has yet to schedule a confirmation hearing for Atkins, Alderoty believes that if he assumes the role, the SEC could potentially step back from civil suits targeting crypto firms, particularly those centered around registration concerns. Ripple, embroiled in a legal dispute with the SEC over the classification of its XRP token as an unregistered security, has been grappling with legal uncertainties since December 2020.
The case has witnessed significant developments, including a federal judge ruling in August 2024 that Ripple was liable for over $125 million. Both Ripple and the SEC have filed appeals, with Ripple challenging the decision. The outcome of the SEC’s leadership transition holds significant weight in determining Ripple’s legal standing and its future interactions with the regulatory body.