According to Odaily, Ripple Labs' Chief Legal Officer Stuart Alderoty has expressed confidence that the U.S. Securities and Exchange Commission (SEC) will face another setback as it prepares to appeal a federal judge's decision involving XRP. In an interview, Alderoty stated, 'This will backfire on the SEC. I feel good about our case in the Southern District of New York and even better about the case in the Second Circuit Court of Appeals.'
Alderoty highlighted that when the SEC first filed a lawsuit against Ripple and its two executives in 2020, the company publicly declared that its legal battle was 'on behalf of the entire industry.' He added that this move indicated the SEC's intention to take action against the entire industry. Nearly four years later, as the case moves to the Second Circuit Court of Appeals, the impact of Ripple's legal struggle on the industry has intensified. This decision could set a precedent in the Southern District of New York, outlining how judges should apply securities laws to XRP.
In August of this year, Judge Torres ordered Ripple to pay a $125 million fine for violating securities laws through XRP transactions. The SEC had previously claimed that Ripple raised $1.3 billion through unregistered securities offerings since 2013 and later sought a $2 billion fine. While Ripple appreciated Judge Torres' ruling that XRP 'is not necessarily a security on its face,' other judges have held differing opinions. The SEC has yet to specify which parts of Torres' ruling it intends to appeal, while Ripple has also taken its own legal actions.
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