The potential appeal by the SEC against the court’s decision in the Ripple case will not affect the status of the XRP token as a non-security, according to the company’s chief legal officer, Stuart Alderoty.
What if the SEC appeals the @ripple case? @s_alderoty @JWVerret pic.twitter.com/xoaAAewjcy
— Digital Asset Investor (@digitalassetbuy) August 15, 2024
He noted that he would not be surprised if the regulator decides to challenge the verdict.
On August 7, Judge Analisa Torres fined Ripple $125 million in the long-standing legal battle with the SEC. Initially, the agency demanded $2 billion.
In July 2023, the fintech firm achieved a partial victory when Torres ruled that programmatic sales and other distributions of XRP by Ripple did not constitute an offer and sale of investment contracts.
The SEC attempted to contest the court’s decision, but Torres dismissed the Commission’s interlocutory appeal.
The agency now has the opportunity for another attempt, but Alderoty is confident that it will not change XRP’s status.
“This is the law of the land and it will not change even if the SEC appeals,” the lawyer emphasized.
Ripple sought to limit the fine to $10 million. The Commission considered this a “slap in the face” to regulatory bodies. The amount set by Torres was seen by the company as a complete victory, and Alderoty stated that the SEC lost “on all the important points.”
Bloomberg Intelligence legal analyst Elliot Stein believes that the Ripple case serves as a “good omen” for Coinbase and other crypto companies in their battles with the regulator.
The SEC filed a lawsuit against the largest American bitcoin exchange in June 2023. The Commission accused the platform of violating securities laws and operating without registration. The agency also took issue with Coinbase Earn’s staking program.
As reported, the SEC is engaged in legal proceedings against well-known industry companies such as Binance and ConsenSys.