Ripple’s Chief Legal Counsel Calls SEC’s Appeal in XRP Ruling Hypocritical
Ripple Labs’ chief legal counsel, Stuart Alderoty, has accused the U.S. Securities and Exchange Commission (SEC) of hypocrisy in its latest filing for an appeal in the XRP court ruling. Alderoty pointed out that SEC Chair Gary Gensler has consistently claimed that the rules are clear, but now the agency is seeking an appeal to resolve legal contradictions. In July, a judge ruled that the sales of XRP on Ripple Labs’ payments platform are not securities transactions. However, the SEC argues that there are “knotty legal problems” that need to be addressed by an appellate court. The SEC also claims that the defendants failed to cite relevant cases regarding the Howey test, which determines whether an asset is a security or not.
Hot Take
The SEC’s decision to appeal the XRP court ruling raises questions about the consistency of its stance on regulations. By seeking an appeal after stating that the rules are crystal clear, the SEC appears to be contradicting itself. This move could further fuel the debate around the classification of cryptocurrencies and how they should be regulated. It remains to be seen how the appellate court will address the legal contradictions raised by the SEC. The outcome of this appeal could have significant implications for Ripple Labs and the broader cryptocurrency industry.
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