Ripple’s Stuart Alderoty Offers Candid Analysis as SEC Appeal Looms

Stuart Alderoty, Ripple’s Chief Legal Officer, has recently weighed in on the ongoing legal confrontation between Ripple and the U.S. Securities and Exchange Commission (SEC). As the proceedings continue to unfold, Alderoty shared his insights on what could potentially happen as the case advances. He outlined a spectrum of possibilities, ranging from the Second Circuit Court fully affirming Judge Analisa Torres’s previous decision to the court possibly expanding upon her rulings.

Alderoty, however, sees the chance of the case being sent back to Judge Torres for further examination as less probable. In a post on the social media platform X, Alderoty expressed confidence in Ripple’s position. He suggested that the SEC’s best-case scenario might involve the case being remanded to the lower court, an outcome that seems improbable to him given the strength of Ripple’s legal stance.

The possibility of a remand could result in Ripple reopening its initial defenses, including the “Fair Notice” argument. This particular defense challenges whether an entity of reasonable intelligence would have recognized their actions as contrary to the law. Alderoty humorously remarked on the SEC’s potential predicament of having to argue that Judge Torres lacked “ordinary intelligence” when she ruled against them, highlighting the awkwardness such a situation would entail.

In his analysis, Alderoty likened the SEC’s relentless legal pursuit to Herman Melville’s “Moby Dick,” with SEC Chair Gary Gensler metaphorically taking on the role of Captain Ahab. He further added a light-hearted comparison to the comedic film “My Cousin Vinny,” underscoring what he perceives as the SEC’s overzealous regulatory enforcement against Ripple.

The legal battle has already seen significant developments. Earlier in the lawsuit, the court sided with Ripple, dismissing the SEC’s claims regarding the classification of XRP as a security. Recently, Stuart Alderoty reassured the XRP community that the ruling, which declared XRP is not a security, remains unchallenged. This clarification has positively influenced community sentiment, fueling optimism about a potential resurgence in the value of XRP.

Legal commentators, including James Murphy, Fred Rispoli, and former SEC attorney Marc Fagel, have weighed in on the matter. They pointed out that although the SEC chose not to appeal the decision on disgorgement during the remedies phase, the final judgment is still open to debate in the appellate briefs. This ongoing uncertainty leaves room for further legal maneuvering and adjustments as the case progresses.

Despite the ongoing litigation, Ripple is forging ahead with its plans, notably the imminent launch of its RLUSD stablecoin. This development is seen as a potential catalyst for XRP’s price, with expectations that it could help propel the cryptocurrency toward the $2 mark. At present, XRP is trading at approximately $0.55, reflecting a modest increase of around 3% over the past week. The digital currency boasts a market capitalization of roughly $31 billion, with a 24-hour trading volume reaching $620 million.

The unfolding legal saga between Ripple and the SEC continues to captivate the cryptocurrency community and market observers alike. The case’s outcome could have significant implications not only for Ripple but also for the broader regulatory landscape governing digital assets. As both parties prepare for the next phase of the legal battle, industry stakeholders are keenly watching for any developments that could shape the future of cryptocurrency regulation and enforcement in the United States.