Ripple General Counsel Clarifies Court’s Ruling, Says XRP Sales By Execs Aren’t Securities.
Ripple’s General Counsel has shed light on Judge Torres’ ruling, saying the company’s execs’ XRP sales and other XRP distributions are not securities.
Stuart Alderoty, Ripple’s General Counsel, has taken to Twitter to clarify the ruling by Judge Analisa Torres in the company’s lawsuit against the SEC.
After a protracted legal battle lasting two and a half years, Judge Torres issued her decision.
Although Judge Torres clarified that XRP is not a security, crypto community members seemed confused about her decision on other aspects of the case.
Alderoty Provides Clarity
In a Twitter thread yesterday, Alderoty, who described the judge’s ruling as a huge win, said the court’s decision implies that XRP is not a security.
A huge win today – as a matter of law – XRP is not a security. Also a matter of law – sales on exchanges are not securities. Sales by executives are not securities. Other XRP distributions – to developers, to charities, to employees are not securities.
— Stuart Alderoty (@s_alderoty) July 13, 2023
The prominent Ripple legal counsel also noted that as a matter of law, XRP sales on secondary markets, including exchanges, are not also securities.
Notably, Alderoty said the judge also declared XRP sales by Ripple’s executives- Brad Garlinghouse and Chris Larsen- as non-securities.
Furthermore, Alderoty noted that the judge also declared other XRP distributions by Ripple to XRPL developers, employees, and charities as non-securities.
Per Alderoty, the only part of the XRP transaction Judge Torres ruled to be an investment contract is Ripple’s past direct XRP sales to institutional clients. Alderoty noted that, according to yesterday’s order, there would be further court proceedings only on these past direct XRP sales to institutional clients.
Meanwhile, Alderoty thanked Ripple’s legal team members for their efforts throughout the lawsuit.
“The Judge’s decision affirms so much of what this industry is fighting for and shows that the SEC does not have unbounded jurisdiction over crypto,” Alderoty added.
Ripple CEO Reacts
As expected, Alderoty’s comment stirred reactions from top crypto stakeholders, including Ripple CEO Brad Garlinghouse. In a tweet yesterday, Garlinghouse pointed to Alderoty’s tweet as a recap of the judge’s ruling.
Ripple CEO hopes that Alderoty’s analysis will address the confusion regarding the ruling.
— Brad Garlinghouse (@bgarlinghouse) July 13, 2023