- Stuart Alderoti suggested that the cryptocurrency sector is still very far from establishing a sustainable regulatory framework.
- He also condemned the SEC’s approach to regulation.
Ripple Labs chief legal officer Stuart Alderoti believes that the SEC’s appeal could further strengthen Ripple’s victory over the regulator. He expressed that opinion on the Chain Reaction podcast.
Alderoti also reiterated his position that XRP is not an investment contract and said the Ripple team would consider an SEC appeal if the agency files one.
“We believe the judge got the situation right and applied the law. We are confident that the appeals court will not only affirm this, but perhaps even strengthen this decision even further,” emphasized the Ripple Labs official.
But despite the optimistic ruling for Ripple Alderoti cautioned that the cryptocurrency sector is still very far from establishing a sustainable regulatory framework. He denounced the SEC’s approach to regulation through enforcement and added that cryptocurrency legislation in the U.S. lags far behind other jurisdictions.
“We still need a rational, comprehensive and understandable regulatory framework for cryptocurrencies in the United States. The SEC’s refusal to comply with cryptocurrency legislation does create problems. The United States is notably lagging behind the rest of the world,” Alderoti said.
Remember Judge Analisa Torres ruled on July 13 that the sale of the XRP token through exchanges or distribution does not constitute an offering of securities. And on July 21, the SEC filed a new application in the pending case against Terraform Labs. In the announcement, the regulator called the court’s ruling in the Ripple Labs case “wrong” and reiterated its plans to appeal.
Incrypted also hosted a stream with Daniel Voloshchuk, a senior associate in Juscutum’s Technology and Investment practice, to find out all the details of the case between the SEC and Ripple. You can read a short squeeze in our piece.
A short squeeze can be read in our story.