Stuart Alderoty, the Chief Legal Officer of Ripple Labs, has expressed strong confidence in the Court of Appeal, reaffirming the District Court’s ruling that XRP is not a security if the US Securities and Exchange Commission (SEC) decides to challenge the decision.
Speaking during TechCrunch’s Chain Reaction podcast Tuesday, the lawyer discussed the significance of the recent court ruling by New York District Judge Analisa Torres on July 13. In the landmark decision, the judge declared that the XRP token does not fall under the category of securities when sold to the general public. However, she also stipulated that it can be deemed a security in the context of past sales to institutional clients.
The case outcome was hailed as a significant “win” by both Ripple Labs and the crypto community, offering a sense of regulatory direction for the much-debated digital asset.
Notably, while the verdict brought relief to Ripple, Alderoty asserted that the search for complete regulatory clarity is far from over. He further noted that despite the SEC’s persistence in claiming that the initial decision was “wrongly decided,” Ripple Labs remains resolute and ready to face any potential appeals.
“We don’t shy away from an appeal and I think the judge got that right and we think that was a faithful application of the law and I think a court of appeal will not only affirm that but maybe even amplify that to even a greater extent.” Said Alderoty.
The possibility of the SEC appealing the XRP decision was hinted at last week in legal documents from a separate case involving Terraform Labs. These documents mentioned the agency’s intention to explore alternative avenues for further review, indicating the possibility of further legal action regarding the classification of XRP.
That said, with the implications of this legal battle extending beyond Ripple’s immediate interests, industry experts have been sharing their perspectives on the possibility of an appeal, emphasizing the need for regulatory certainty to foster innovation in the blockchain and cryptocurrency space.
According to pro-XRP lawyer John Deaton, however, the SEC is likely to abandon the appeal route owing to differences between senior members of the agency, with some arguing against appealing, citing XRP’s uniqueness, while others advocate appealing to influence other judges.
“Some will say don’t appeal, and the SEC can argue “facts and circumstances” and that XRP is a unique story, one not shared by other tokens, “Deaton said on Tuesday. On the other hand, “not appealing could signal acceptance of the Torres ruling,” he added.