Lawyer discusses victory in court following SEC's abandonment of aggressive crypto enforcement measures.
In a quick, candid video, Ripple's Chief Legal Officer, Stuart Alderoty, celebrates the SEC's decision to drop their case as a shift in the regulator's strategy towards crypto.
"The SEC has dropped their appeal against Ripple, and they've abandoned every crypto-related enforcement case in the U.S.," Alderoty boldly declared.
This decision appears to validate the long-standing crypto industry argument that enforcement actions need clear regulatory guidelines to be justified.
Alderoty highlighted the U.S.'s lack of clear laws, rules, and regulations concerning cryptocurrency, a point Ripple has repeatedly made during their legal battle. The case, which started in December 2020 and focused on XRP's classification as a security, became one of the most closely watched in the crypto industry.
With legal hurdles out of the way, Alderoty shared Ripple's future strategy: "We're going to clean up the mess, get out of the courtroom, and get back to running our business." The company plans to work closely with Congress to create smart crypto regulation. This regulation should protect consumers, maintain market integrity, keep bad actors at bay, and foster innovation.
In 2023, the court partially ruled in Ripple's favor, stating that institutional sales were legal, but XRP sales on public exchanges violated securities laws. Ripple had set aside $125 million in escrow for potential penalties, which CEO Brad Garlinghouse promised to return with the legal resolution.
Garlinghouse recently shared his thoughts on the resolution in an interview with Fox Business. He believes the SEC's new leadership, with Trump appointee Paul Atkins as chair, signifies a fundamental change in the SEC's approach to crypto oversight.
It's worth noting that Ripple supported President Trump during his campaign and donated millions to his inauguration on Jan. 20.
Meanwhile, Senator Cynthia Lummis recently claimed that Trump supports a bill proposing a 1M Bitcoin strategic reserve, further illustrating the ongoing engagement of political figures in crypto matters.
The cryptocurrency regulatory landscape in the U.S. is refining, with regulatory bodies and lawmakers continuously striving for clearer guidelines. Here's a quick overview of the current situation:
- Lack of Clear Regulations: The U.S. regulatory framework for cryptocurrency is still developing to accommodate the dynamic nature of digital assets.
- SEC's Role: The Securities and Exchange Commission (SEC) plays a significant role in crypto regulation, conducting enforcement actions against unregistered exchanges and exploring the securities classification of certain cryptocurrencies.
- Recent Legislative Developments: The Deploying American Blockchains Act of 2025, a bipartisan bill, aims to boost blockchain technology deployment and competitiveness. The U.S. Senate Banking Committee is working on a comprehensive crypto market bill due by August 2025, and the Securities Clarity Act seeks to provide clarity about the regulatory treatment of cryptocurrencies. A recent bill has also eliminated burdensome IRS rules related to DeFi crypto brokers, marking the first federal law focusing specifically on crypto regulation.
- In a recent interview, Ripple's CEO, Brad Garlinghouse, indicated that the new leadership at the SEC, with Paul Atkins as chair, signals a shift in the SEC's approach to crypto oversight.
- Stuart Alderoty, Ripple's Chief Legal Officer, claims that the U.S.'s lack of clear laws, rules, and regulations concerning cryptocurrency was a point of contention during Ripple's legal battle.
- Garlinghouse believes that the SEC's decision to drop their case against Ripple is a validation of the long-standing crypto industry argument that enforcement actions require clear regulatory guidelines.
- With the legal hurdles out of the way, Ripple plans to work closely with Congress to create smart crypto regulation that protects consumers, maintains market integrity, keeps bad actors at bay, and fosters innovation.
- In December 2020, the case against Ripple, focusing on XRP's classification as a security, became one of the most closely watched in the crypto industry.
- The court partially ruled in Ripple's favor in 2023, stating that institutional sales were legal, but XRP sales on public exchanges violated securities laws.
- Ripple had set aside $125 million in escrow for potential penalties, a sum that CEO Garlinghouse promised to return once the legal resolution was achieved.
- Brad Garlinghouse shares that Ripple supported President Trump during his campaign and donated millions for his inauguration on January 20, 2021, making the SEC's recent decision a topic of general-news interest.
