SEC Wants to ‘Remake the Law,’ Rather Than ‘Apply it,’ Says Ripple General Counsel
After two years of litigation, Stuart Alderoty, general counsel at Ripple, told CoinDesk TV’s “First Mover” he sees “the beginning of the end” because the SEC’s case has fallen short.
The legal battle between the U.S. Securities and Exchange Commission (SEC) and payment protocol company Ripple Labs could soon be coming to a close – that is, if a federal judge decides the crypto company did not violate federal securities laws.
Stuart Alderoty, general counsel at Ripple Labs, told CoinDesk TV the crypto company is feeling “confident,” and thinks it could be “the beginning of the end” of the case, which began in 2020.
“There are no allegations of fraud in this case. There are no allegations of misrepresentation. There are no allegations of market manipulation,” Alderoty said during an appearance on CoinDesk TV’s “First Mover.” “It really is a technical issue and we believe it’s an issue that can be resolved as a matter of law by the judge.”
Both the SEC and Ripple have filed summary judgment motions with the U.S. District Court for the Southern District of New York in a bid to avoid going to a full trial. CoinDesk sought comment from the SEC but a response was not available by press time.
In December 2020, the SEC sued Ripple Labs for allegedly selling XRP, a cryptocurrency closely tied to the company, as unregistered securities transactions. The SEC alleges the company sold XRP tokens while letting investors believe they would get a substantial return on the company’s profits.