Ripple CLO Stuart Alderoty Suggests Ripple’s Legal Victory Holds Relevance for Ongoing SEC Cases

In mid-July, Ripple secured a legal victory against the U.S. Securities and Exchange Commission (SEC), refuting allegations of unregistered securities offerings for its digital asset, XRP. Following this triumph, Ripple CLO Stuart Alderoty has suggested that this ruling could have implications for two other ongoing SEC cases involving major cryptocurrency exchanges, Coinbase and Binance.

During an interview on TechCrunch’s Chain Reaction podcast, Alderoty emphasized the crucial role of the seller-buyer relationship in securities cases, implying that the SEC’s claims about assets as standalone securities may be challenged by the recent ruling.

Additionally, Alderoty clarified Ripple’s separation from XRP, asserting that while the company uses the XRP token, it did not create or issue it. This distinction is vital as it sheds light on XRP’s classification, differentiating it from traditional securities and potentially easing regulatory burdens.

Ripple CLO Stuart Alderoty

Drawing parallels between Ripple’s case and the ongoing lawsuits against Coinbase and Binance, Alderoty suggested that the ruling’s implications could be beneficial for the exchanges. By challenging the SEC’s jurisdiction over exchange-traded assets, the ruling might provide leeway for the exchanges to navigate the regulatory landscape.

While Alderoty highlighted the importance of investor protection, he also emphasized the need for exchanges to engage in compliance without treating all assets as securities, promoting both security and innovation within the crypto industry.

Overall, Ripple’s legal victory has broader implications, potentially reshaping the regulatory landscape for digital assets and exchanges, and underscoring the necessity for clear frameworks that balance investor protection with fostering innovation in the cryptocurrency space.

Read more:

Join us on Telegram

Follow us on Twitter

Follow us on Facebook

Follow us on Reddit

You might also like