XRP Is Not Security: Ripple CLO Celebrates 'Huge Win' Over SEC
On this day, exactly a year ago, Judge Torres issued an important ruling, which states, among other things, that XRP is not a security. This marked a milestone both for Ripple and crypto regulation.
To commemorate this date, Ripple Chief Legal Officer Stuart Alderoty shared his reflection on the outcomes of the ruling.
"Gross overreach"
According to Alderoty, the decision has broader implications considering the general position of the U.S. Securities and Exchange Commission (SEC). For instance, the recent development of Binance is another example of the SEC's “overreach” under Chair Gensler.
However, he noted that resolving the status of tokens on a case-by-case basis through extensive litigation is not a viable long-term solution.
Alex DovbnyaAlderoty pointed out growing frustration among policymakers from both political parties over the lack of legislative progress on crypto regulations. He warned that the U.S. is falling behind other countries in this regard.
Ripple v. SEC ending
For nearly four years, Ripple has been in a legal battle with the SEC. The latter accused Ripple of conducting an unregistered securities offering through the sale of XRP. The outcome of this high-profile case could significantly impact the cryptocurrency industry.
Although the exact date of the highly-anticipated verdict remains unknown, some speculate it might happen in late July.
In April, Ripple filed its opposition to the SEC's motion for remedies. Ripple contends that any civil penalty should not exceed $10 million, whereas the SEC had previously argued for a much steeper penalty of $2 billion.
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