Ripple’s Chief Legal Officer Calls Out SEC’s Hypocrisy: Remembers Taking a Dig at SEC’s Pre-Settlement Offer 3 Years Ago

Ripple’s ongoing dispute with the SEC has taken a new turn as Stuart Alderoty, Ripple’s Chief Legal Officer, recently criticized SEC officials, particularly Gary Gensler, in reference to a controversial proposal made three years ago.

Alderoty revealed that before the SEC filed a lawsuit against Ripple, they had suggested a settlement. This settlement would have required Ripple to acknowledge XRP as a security and comply with current securities regulations within a short period of time. However, Ripple declined the offer, firmly believing that XRP was not a security and pointing to the ambiguous rules surrounding cryptocurrencies.

After a three-year legal battle, Ripple achieved some positive outcomes this year. On July 13, a significant decision confirmed that XRP is not a security. Alderoty emphasized that obtaining clarity on XRP’s status was their primary objective throughout the entire process.

Alderoty also highlighted Ripple’s resilience in fighting the lawsuit, stating that despite doubts, the company emerged victorious. He further pointed out the SEC’s inconsistent arguments that were exposed during the legal proceedings, particularly through Magistrate Sarah Netburn’s criticism of the SEC’s opportunistic approach to further its own agenda rather than upholding the law faithfully.

However, the case is not yet concluded as the final judgment is pending. The case will now move into the remedies phase to determine the penalty for Ripple’s alleged violations of the law. After this, the SEC will decide whether to challenge the judgment at the Second Circuit or consider a settlement with Ripple, although the outcome remains uncertain. While Ripple’s case has been unique and a well-fought legal battle, other companies may struggle to navigate the regulatory challenges.

Due to the SEC’s current position, they are not well-prepared to introduce new rules. Instead, they rely on the Supreme Court’s decision in the Howey case to address the complexities surrounding securities. The SEC has made it clear that if a cryptocurrency asset is offered and sold as a security, it must undergo the disclosure process established by Congress.

In conclusion, Ripple’s dispute with the SEC has entered a new phase with Stuart Alderoty speaking out against SEC officials and emphasizing Ripple’s stance on XRP’s security status. While Ripple has achieved some favorable outcomes, the final judgment and potential penalties are still pending, leaving the resolution of the case uncertain.