Stuart Alderoty, General Counsel and Chief Legal Officer of Ripple has disclosed information regarding a settlement offer by the Securities and Exchange Commission (SEC) concerning the 2020 XRP lawsuit.
The SEC I sued CEO Bradley Garlinghouse and co-founder Christian Larsen of Ripple on December 22, 2020, sparking the start of the legal battle. The SEC claimed that they raised more than $1.3 billion through the sale of XRP and accused them of carrying out an unregistered digital asset security offering.
Today, the cryptocurrency community took to social media to criticize the SEC’s inability to establish cryptocurrency industry compliance three years after the XRP case. They brutally blame the SEC for preferring to pursue some harsh enforcement strategies that have led to the massive crackdown of major cryptocurrency exchanges like Binance and Coinbase.
SEC’s Offer of Settlement, Alderoty Accuses SEC of Underperforming
Details of a settlement offer the SEC made to Ripple were recently made public by Stuart Alderoty. Alderoty claims that the SEC put forth a settlement that would have permitted Ripple to carry on with business as usual without designating XRP as a security.
A recent analysis by Amaka Nwaokocha on Cointelegraph says that if this offer had been accepted, Ripple might have avoided more serious repercussions, and the XRP market might have gained regulatory clarity. Alderoty, in a statement, certified that the SEC did not provide specific rules or guidelines for cryptocurrency compliance.
Alderoty made it clear that the main focus of the case between XRP and SEC was to prove that XRP is independent security, despite many perspectives. The United States cryptocurrency sector has affirmed that the present securities laws are not suitable for cryptocurrency assets, while the SEC is making little or no effort to establish specific cryptocurrency regulatory rules or guidelines.
Legal Landscape and Summary Judgment Explained, U.S. Cryptocurrency Reproach SEC
Notable progress was made in July 2023 when Judge Analisa Torres ruled in a summary judgment that XRP is not a security in retail transactions. This decision gave Ripple a significant victory and sparked debate about the broader ramifications for the cryptocurrency’s legal standing.
The summary judgment recognized that the categorization of XRP might change based on the situation in which it is used. Though the ruling covered the retail aspect, the SEC’s settlement offer has continued to make things more complicated. Alderoty explained that amid different perspectives, the main reason for this lawsuit is to prove that XRP is independent and not a security.
The United States cryptocurrency industry has resolved that the present securities laws are not suitable for cryptocurrency assets. Yet, the SEC has been advised to make a frantic effort to establish particular regulatory guidelines for the cryptocurrency industry.
Market and Community Response, As SEC Vs. XRP Case Continues
Cointelegraph had reported that the SEC had suspended all the charges against Larsen and Garlinghouse. This is before Judge Analisa Torres’s ruling that XRP cannot be termed a security in any retail transaction.
The disclosure of the SEC’s settlement offer has sparked conversations regarding possible outcomes and how they might affect XRP’s regulatory environment. The legal dispute between Ripple and the SEC is still pending, and the cryptocurrency community is closely monitoring any new developments that may impact XRP’s regulatory trajectory.
It is believed that the court’s rulings and ongoing discussions will affect Ripple and XRP, the broader ramifications will also affect how regulatory bodies handle cases similar to Ripple in cryptocurrency.