Concerns of a potential appeal by the United States securities regulator to the landmark Ripple ruling earlier this month were shrugged off by Ripple’s chief legal officer.
Stuart Alderoty believes that if the SEC takes the case to an appeal, the court could move to consolidate Ripple Labs’ partial victory over the financial regulator even further.
Speaking on a July 26 TechCrunch podcast, Alderoty reiterated his position that the XRP (XRP) token does not constitute an investment contract and that the Ripple team would not shy away from any appeal brought to the courts by the SEC.
“We think the judge got that right, and we think that was a faithful application of the law, and I think a court of appeals will not only affirm that but maybe even amplify that to even a greater extent.”
On July 13, Judge Analisa Torres ruled XRP was not a security when sold to the public on crypto exchanges but can be treated as a security when sold to institutional investors.
On July 21, the SEC used its ongoing case against Terraform Labs founder Do Kwon to air out its grievances with the ruling and hinted that it would appeal the split-decision ruling in the future.
“Respectfully, those portions of Ripple were wrongly decided, and this Court should not follow them,” SEC lawyers wrote, asserting that retail sales of XRP should have been deemed securities.
“SEC staff is considering the various available avenues for further review and intends to recommend that the SEC seek such review,” the lawyers added.
SEC Chair Gary Gensler also expressed his disappointment over the court’s decision on XRP adding the regulator would continue to assess the ruling.
In light of the ruling, Alderoty predicted if the SEC continues to claim that crypto assets themselves are securities it would begin to lose ongoing cases where the SEC attempts to make such claims.
“Our case and the decision rendered by our judge [Torres] will provide comfort to other judges that the SEC is just misguided.”
Despite his optimism, Alderoty warned the crypto sector is still a long way away from standing on solid regulatory ground. He condemned the SEC’s regulation by enforcement approach for causing crypto laws in the U.S. to fall well behind other jurisdictions.
“We still need a rational, comprehensive and understandable regulatory framework for crypto in the U.S.,” he said. “Because of the SEC’s refusal to faithfully apply the law […] the U.S. has been visibly falling behind the rest of the world.”
Currently, XRP is changing hands for around $0.70, up nearly 43% in the last month, according to Cointelegraph data.
Collect this article as an NFT to preserve this moment in history and show your support for independent journalism in the crypto space.
Canterbury MP Rosie Duffield has resigned from the Labour Party.
The 53-year-old MP is the first to jump ship since the general election and in her resignation letter criticised the prime minister for accepting thousands of pounds worth of gifts.
She told Sir Keir Starmer the reason for leaving now is “the programme of policies you seem determined to stick to”, despite their unpopularity with the electorate and MPs.
In her letter she accused the prime minister and his top team of “sleaze, nepotism and apparent avarice” which are “off the scale”.
“I’m so ashamed of what you and your inner circle have done to tarnish and humiliate our once proud party,” she said.
Since December 2019, the prime minister received £107,145 in gifts, benefits, and hospitality – a specific category in parliament’s register of MPs’ interests.
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Ms Duffield, who has previously clashed with the prime minister on gender issues, attacked the government for pursuing “cruel and unnecessary” policies as she resigned the Labour whip.
She criticised the decision to keep the two-child benefit cap and means-test the winter fuel payment, and accused the prime minister of “hypocrisy” over his acceptance of free gifts from donors.
“Since the change of government in July, the revelations of hypocrisy have been staggering and increasingly outrageous,” she said.
“I cannot put into words how angry I and my colleagues are at your total lack of understanding about how you have made us all appear.”
Ms Duffield also mentioned the recent “treatment of Diane Abbott”, who said she thought she had been barred from standing by Labour ahead of the general election, before Sir Keir said she would be allowed to defend her Hackney North and Stoke Newington seat for the party.
Her relationship with the Labour leadership has long been strained and her decision to quit the party comes after seven other Labour MPs were suspended for rebelling by voting for a motion calling for the two-child benefit cap to be abolished.
“Someone with far-above-average wealth choosing to keep the Conservatives’ two-child limit to benefit payments which entrenches children in poverty, while inexplicably accepting expensive personal gifts of designer suits and glasses costing more than most of those people can grasp – this is entirely undeserving of holding the title of Labour prime minister,” she said.
Ms Duffield said she will continue to represent her constituents as an independent MP, “guided by my core Labour values”.