XRP Lawyer Highlights Contrasting Results for Ripple and Terra in SEC Battle
In a recent courtroom battle between the SEC and Terraform Labs, Judge Rakoff ruled in favor of the SEC, declaring Terraform Labs’ digital assets, including UST, as unregistered securities. This was a significant win for the SEC. However, Ripple’s chief legal officer, Stuart Alderoty, emphasized the substantial nature of Ripple’s legal victory, thereby differentiating it from the Terra case.
Alderoty used the analogy of a small crack compromising a battleship’s structural integrity, leading to its eventual demise, to illustrate the impact of Ripple’s legal triumph. In contrast, attorney John Deaton, representing XRP holders, highlighted the differing facts and legal disparities between the Terra and Ripple cases.
Deaton referred to the Howey analysis, which is crucial in such matters, as a fact-intensive exercise. He described the Terra case as a severe accident caused by a reckless driver, showcasing the government’s success in holding Terra accountable. On the other hand, Deaton portrayed the Ripple case as a minor infraction, comparable to receiving a speeding ticket for an expired registration. While Ripple faced a fine, it emerged victorious on the key aspect of causing the accident.
Deaton emphasized that Ripple was cleared of any damages related to the incident, marking a pivotal distinction between the two legal battles.