Ripple’s Chief Legal Officer, Stuart Alderoty, has once again criticized the U.S. Securities and Exchange Commission (SEC) for its regulatory approach, labeling it as “lawless.” In a recent tweet, Alderoty pointed out the SEC’s tactics, which he believes are not in line with the law.
Alderoty emphasized that Ripple had exposed these tactics early on in their legal battle, shedding light on significant issues with the SEC’s enforcement strategy. He highlighted that the court in Ripple’s case had acknowledged the SEC’s tendency to adopt litigation positions that serve its own goals rather than adhering to the law.
The Ripple CLO raised concerns about the SEC’s actions under the leadership of Chair Gary Gensler, stating that the agency is acting rogue. The focus, according to Alderoty, should be on holding the SEC accountable for its actions.
Criticism of the SEC’s regulatory approach is not new, with industry leaders and legal experts also questioning the agency’s lack of clarity in rules and enforcement actions without clear guidance.
In a landmark victory, Ripple emerged triumphant in its legal battle with the SEC in July 2023, with the Court ruling that XRP is not a security. This ruling dealt a blow to the SEC’s broader crackdown on crypto assets, giving Ripple and the crypto industry momentum in their quest for regulatory certainty.
Despite the ruling, the SEC announced its intention to appeal the Court’s decision on certain prior XRP distributions by Ripple. Ripple, on the other hand, filed Form C outlining the issues it plans to raise in its cross-appeal. To comply with the legal process, Ripple deposited $125 million in an escrow account for potential remedies.
The appeal and cross-appeal briefing in the Ripple case are expected to continue into the first half of 2025, with a court argument likely in the fall of the same year. A final ruling from the appellate court will follow thereafter.
Ripple’s legal battle with the SEC has significant implications for the crypto industry, setting a precedent for regulatory clarity and accountability. As the case progresses, all eyes will be on how the courts interpret and decide on the complex issues at hand.