Ripple's General Counsel, Stuart Alderoty, recently raised the attention about the U.S. Securities and Exchange Commission's (SEC) weak performance in the Supreme Court, with five losses in their last six cases. Alderoty noted that in the most recent ruling, Securities and Exchange Commission, et al. v. Michelle Cochran, the apex court held that Texas accountant Michelle Cochran had the right to challenge the constitutionality of her Administrative Law Judge's (ALJ) removal protections in federal court prior to her administrative adjudication. Ripple has been using this ruling in its battle with the United States government over the attempt of the Chairman of the SEC, Jay Clayton, to classify the cryptocurrency XRP as security.
The cryptocurrency firm has been procuring legal support from high-level lawyers and entities to protect their own interests and maintain their status in the market. The SEC has long been aiming to position XRP in the same category as other cryptocurrencies such as Bitcoin and Ethereum, but Ripple's legal team has been able to make a case against the SEC's approach. This strategy has become increasingly effective as the SEC has been responding to their letters - highlighting their latest decision in Bittner v. United States which supports Ripple's defense of fair notice.
The fair notice argument put forward by Ripple has argued that the SEC failed to provide clear guidance on compliance with securities laws regarding digital assets, resulting in market participants being confused. This confusion has been made evident with the number of losses suffered by the SEC in key legal cases involving the regulation of digital assets. Ripple has maintained a calm and composed attitude in their dispute with the SEC to the point where their response to the SEC's letter has highlighted their continuing reliance on the Howey precedent.
It appears that Ripple is in a strengthened position legally and are now working towards establishing their legal framework for digital assets. Alderoty's attention to the SEC's performance in the Supreme Court demonstrates that Ripple is committed to ensuring the best outcome for their position.
Austin Bailey
- 2023-04-14
Ripple Battles U.S. SEC in Court
Ripple's General Counsel, Stuart Alderoty, has raised attention to the U.S. Securities and Exchange Commission's (SEC) recent five losses in their last six cases in the United States Supreme Court. Ripple has used these rulings to protect their own interests and maintain their status in the market.
