Ripple vs SEC: Ripple CLO, Stuart Alderoty, Declares Ripple Case Is Concluded
Ripple CLO, Stuart Alderoty announced in a recent post that the legal dispute involving Ripple and the U.S. Securities and Exchange Commission (SEC) has concluded. He pointed out that the lawsuit has been resolved in the United States District Court for the Southern District of New York (SDNY).
Final Judgement Issued
The final judgment, issued by Judge Analisa Torres on August 7, marked the culmination of the legal proceedings, bringing clarity to the regulatory status of Ripple’s use of XRP in response to the SEC’s claims. Notably, Judge Torres reduced the SEC’s proposed fine from nearly $2 billion to $125 million and imposed an injunction on Ripple’s future sales of XRP to U.S.-based institutional clients.
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Despite potential appeals from both parties, Ripple’s CLO asserts that the lawsuit against the SEC has concluded. Furthermore, Alderoty emphasized the ongoing relevance of Ripple’s fair notice defense and its broader implications for companies facing SEC litigation. This defense asserts that the SEC failed to provide sufficient notice to the industry regarding the regulatory status of cryptocurrencies like XRP under securities laws.
In response, the SEC cited its July 2017 report on the DAO, wherein it clarified the applicability of U.S. securities laws to certain crypto asset securities. However, Alderoty highlighted the SEC’s admission of confusion surrounding its terminology, particularly its use of the term “crypto asset securities.”
SEC Apologized for the Confusion on Crypto Asset Securities
The SEC apologized for the confusion it caused in the Binance lawsuit, explaining that “crypto asset securities” is a shorthand term referring to the understanding, expectations, and contracts related to token distribution and sales, rather than indicating that tokens are inherently securities themselves. The SEC’s acknowledgment of confusion has sparked criticism, with Alderoty characterizing the agency as conflicted and self-contradictory.
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Michael Onche: Crypto aficionado and seasoned analyst. With a keen eye for market trends and a passion for blockchain technology, he deciphers the intricacies of cryptocurrency with precision. Michael’s expertise and insightful content make him a trusted guide for navigating the dynamic world of digital assets.
