- The legal opinion marked by the court decision that the XRP token is not a security per se helps to add legal certainty.
- As Ripple’s CLO Stuart Alderoty mentioned, it is highly unlikely that the SEC will appeal, and the court’s decision seems reasonable and fair.
- The decrease in the fine and the legal code created by this case are considered as a victory for both Ripple and all cryptocurrencies.
In his statement, Stuart Alderoty, who serves as the Chief Legal Officer of Ripple, was quick to note that he did not expect the SEC to appeal the recent court judgment. The decision which directed Ripple to pay $125m for not registering XRP sales to institutions was considered as a victory of Ripple partly. Nevertheless, the court’s decision to clarify that XRP is not a security in and of itself can be considered a legal win for Ripple.
The lawsuit that Ripple has with the SEC has gained so much attention from the whole industry.. The SEC had intended to ask for much higher damages of $2 billion, but getting off with a much more minor penalty was good news for Ripple. Alderoty pointed out that this is not only a positive result for Ripple but also significant and specific legalization for the crypto market.
As per the statement from Alderoty, the decision helps resolve the ambiguous notion of determining what constitutes a security, like XRP. He stressed that through it, the court determined that XRP, in the same way as any other, for example, gold, is not a security. He opines that it will aid in defining the future direction of the crypto regulations across the United States, possibly reducing the conflict between them and the industry.
The Next Steps for the SEC
Although the SEC could appeal the decision, Alderoty is sure it won’t happen. He implied that if the SEC acted reasonably, it would ensure the court delivered a reasonable outcome. Alderoty also shares this opinion but stresses that any further lawsuits have already offered enough clarification in the industry and that continued litigation will do more harm than good.
In addition, the Ripple CLO noted that there were no instances of losses or the use of XRP in fraudulent activities related to Ripple’s transactions. He points out that this also supports the court’s reasoning and that the decision was thus justified.
The post Why Ripple’s CLO Believes the SEC Won’t Appeal the XRP Ruling appeared first on Crypto News Land.
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