An appeal by the U.S. Securities and Exchange Commission (SEC) against Judge Analisa Torres’ ruling on XRP will strengthen and uphold the decision, according to Stu Alderoty, the chief legal officer (CLO) of Ripple Labs. In an interview with TechCrunch’s Chain Reaction, Alderoty stated that the judge’s decision was a “faithful application of the law.” The SEC had hinted at a potential appeal after Judge Torres ruled that XRP constitutes security when sold to institutional clients. Ripple remains unfazed by the appeal, as it believes it will only affirm the judge’s decision and potentially amplify it.
The Ripple CLO also mentioned that the XRP ruling could have a significant impact on the SEC’s cases against Binance and Coinbase, two major cryptocurrency exchanges. The decision clarified that the trading of crypto assets does not fall under investment contracts and, therefore, should not be considered securities. This could mean that the SEC has no authority over exchange trades, which is crucial to the lawsuits against both platforms. Additionally, if the SEC claimed that crypto tokens are securities in their own right, it could risk losing the cases.
Alderoty emphasized that the battle for regulatory clarity in the crypto sector is far from over. He stated that a rational and comprehensive regulatory framework is needed for cryptocurrencies in the U.S. He criticized the SEC’s approach of regulation by enforcement, stating that it has caused the U.S. to fall behind the rest of the world. The ruling on XRP underscores the urgency of establishing clear rules for the crypto industry.
In summary, the SEC’s appeal against Judge Torres’ ruling on XRP is expected to strengthen and uphold the decision. Ripple believes that the appeal will not only affirm the judge’s ruling but potentially amplify it. The ruling could also have implications for the SEC’s cases against Binance and Coinbase. The need for a clear regulatory framework for cryptocurrencies in the U.S. is highlighted by this ruling. The battle for regulatory clarity in the crypto sector is ongoing, and Ripple remains committed to advocating for a rational and comprehensive approach.