Ripple’s Top Lawyer Weighs In on Terra Decision

Stuart Alderoty, the chief legal officer of Ripple, has weighed in on the recent ruling in the Terraform Labs case in a social media post.  

Alderoty refrained from taking a definitive stance on the Terraform case but underscored three pivotal aspects of the court’s decision. 

He stressed the paramount importance of factual basis in legal judgments, noted the lack of criticism or reference to a similar Ripple case by Judge Jed Rakoff, and critiqued the SEC’s ongoing strategy of addressing cryptocurrency regulation through prolonged, token-by-token litigation. 

The lawyer views such a strategy as a misguided effort driven more by a quest for political power than by sound policy.

SEC scores a win 

As reported by U.Today, Judge Rakoff has ruled in favor of the SEC in its case against Terraform Labs. 

The court declared Terraform Labs’ digital assets, including UST, as unregistered securities after applying the Howey Test.

This decision marks a notable victory for the SEC, but it is unlikely to further clarify the regulatory landscape for digital assets. 

SEC’s diminishing influence? 

Alderoty’s recent comments signal a shift in the cryptocurrency industry’s perception of the SEC’s authority.

As reported by U.Today, the top lawyer recently opined that the industry is becoming increasingly resilient to the SEC’s legal threats despite the agency’s ongoing efforts to regulate the sector. 

This observation comes as the crypto world enters 2024 while facing prolonged legal battles and regulatory uncertainties. 

The SEC’s extended campaign against major crypto players, including Ripple, is very likely to continue.