Ripple’s CLO Criticizes US SEC’s Latest Appeal, Questions Legal Strategy

Ripple’s Chief Legal Officer (CLO) Stuart Alderoty has openly slammed the United States Securities and Exchange Commission (SEC) for its most recent legal move, marking a significant step in the ongoing dispute over XRP and the blockchain payment firm. 

US SEC’s Appeal Move Receives Backlash From Stuart Alderoty

The prolonged legal tussle between the US SEC and Ripple over XRP saw a notable turn of events on Wednesday as the regulatory body filed for an appeal toward the court’s previous ruling that XRP does not constitute a security nature under the requirements of the current legislation.

It is worth noting that the agency’s move to file a notice of appeal to the Second Circuit Court of Appeals comes less than 2 months after Judge Analisa Torres gave her final decision in the lengthy case, in which Ripple was fined $125 million instead of the $2 billion the SEC initially sought.

The recent development so far has received stark criticism from the community at large. Ripple’s CLO Stuart Alderoty, recently voiced his displeasure with the SEC’s decision to appeal, flagging the move as “disappointing.” Alderoty’s statements indicate the growing frustration of the company.

Even though the Ripple CLO is disappointed in the latest approach, he was not surprised since he already foresaw the outcome. According to Alderoty, given that the agency’s argument that Ripple operated irresponsibly was earlier rejected by the Court since there were no claims of fraud, no victims or losses, the decision only makes the Commission’s already complete embarrassment worse.

Alderoty further criticized the US SEC that the regulatory body continues to wage a war of lawsuits against the crypto industry under the leadership of its current chairman, Gary Gensler rather than faithfully enforcing the law, suggesting a lack of transparency.

However, the CLO has underscored the firm’s commitment to respond to the move as Ripple evaluates whether to file a cross-appeal. “Either way, the SEC’s lawsuit has been irrational and misguided from the start, and we’re ready to prove that yet again in the appellate court (once again taking the lead for the industry),” Alderoty stated.

Key Timelines In SEC Vs. Ripple Case

As the lawsuit wages on, Fred Rispoli, a Counselor and Attorney has pointed out several upcoming developments and crucial dates to watch out for. Rispoli disclosed that a briefing by the SEC is likely to occur by December 2, 2024, and January 1, 2025, in the event of a permissible 30-day extension.

Also, should Ripple decide to cross-appeal, the opening brief will take place around the aforementioned time, pinpointing the opposition briefs around February 2, 2025. Rispoli believes that the payment firm might accept its extension, bringing the date to March 2, 2025.

Other important dates underlined by the attorney include reply briefs by March end, 2025, an oral argument between September and October 2025, and a ruling from the Second Circuit Court of Appeals between January and April 2026.

Ripple
XRP trading at $0.5170 on the 1D chart | Source: XRPUSDT on Tradingview.com

Featured image from YouTube, chart from Tradingview.com

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