Ripple’s top lawyer Stuart Alderoty has again taken to Twitter to meticulously counter the allegations made by the United States Securities and Exchange Commission (SEC) in the ongoing high-profile suit.
Alderoty reiterated the blockchain payments firm’s defence while taking aim at the agency and skeptics.
Is XRP Suit Ending Soon?
Ripple’s general counsel Stuart Alderoty argues that there is no investment contract because there’s no formal contract between the company and purchasers. Alderoty further noted that the SEC has failed to satisfy any of the limbs of the infamous Howey Test. He also points out that the commission’s reliance on precedent initial coin offering (ICO) cases has no bearing on the XRP lawsuit.
Ripple was sued in December 2020 for allegedly raising more than $1.3 billion through an unregistered securities offering. The case is one of the biggest crypto suits before the SEC, and it has attracted a great deal of media coverage because of the popularity of the XRP cryptocurrency, which is used in Ripple’s payment network.
The case is also approaching conclusion after a gruelling two-year-long battle. Earlier this month, Ripple and the SEC filed redacted replies to each other’s opposition to motions for summary judgment.
Notably, Ripple’s Alderoty states that the regulator is striving to alter the firm’s arguments as they have no answers to the aforementioned ones that it makes. In this vein, he notes that the SEC should at least try to understand Ripple’s legal positions before trying to debunk them.
The reason the SEC and detractors try to recast our arguments is they have no answer for the arguments we actually make.
— Stuart Alderoty (@s_alderoty) December 7, 2022
In another recent tweet, Alderoty agreed that the long-drawn case might be nearing the end.
Significance of Ripple Case In Crypto Regulation
It’s common practice for companies under the SEC microscope to settle allegations quietly without going to trial, which is why Ripple’s case is so rare — offering a courtroom test of the law. Ripple pledges to fight the suit right to the Supreme Court. According to Alderoty, the company is proud of the defense it has mounted so far on behalf of the entire cryptocurrency industry.
Win or lose, Ripple is likely to set an example for peers. Whether its native cryptocurrency XRP falls within the parameters of what constitutes a security will ultimately be for the court to decide.
That being said, Ripple losing would essentially give the SEC the ammunition it needs to go after other companies in the cryptoverse. In other words, the result of that legal wrangle could permanently alter the fate of crypto trading.