Ripple's chief legal officer, Stuart Alderoty, has expressed satisfaction following the conclusion of the legal battle with the U.S. Securities and Exchange Commission (SEC) concerning the status of XRP. Alderoty highlighted that Ripple's stance has been vindicated by the court, which ruled that XRP, as a token, is not inherently a security. He compared this to commodities like gold, which also are not considered securities in themselves.
The court’s decision provides crucial clarity for Ripple, confirming that XRP is not a security in its own right. However, Alderoty acknowledged that certain historical sales of XRP, particularly those dating back to 2015 and involving sophisticated third parties, should have been registered under existing securities laws. Ripple accepts this aspect of the ruling, which has resulted in a $125 million fine, payable within 30 days.
Despite the penalty, Alderoty views the ruling as a positive development that allows Ripple to focus on expanding its operations both domestically and globally. He emphasised the importance of the clarity provided by the court, which he believes will enable Ripple to move forward with greater confidence.
While the SEC has the option to appeal the ruling within 60 days, Alderoty is hopeful that this will not happen. He noted that if the SEC acts rationally and the current administration genuinely wants to move beyond its confrontational stance towards the crypto industry, there should be no further legal action.
Alderoty criticised the SEC’s approach, arguing that its focus on regulating the crypto industry has deviated from its primary mission. He called for the creation of clear laws and regulations to allow the crypto industry to flourish in the U.S., as it is doing in other parts of the world.
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