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HomeCrypto NewsMarketCourt Rules XRP, XRP Sales By Executives, XRP Sales On Exchanges As Non-Security

Court Rules XRP, XRP Sales By Executives, XRP Sales On Exchanges As Non-Security


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Ripple General Counsel Clarifies Court’s Ruling, Says XRP Sales By Execs Aren’t Securities.

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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.

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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.


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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.



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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.



Lele Jima
Lele Jima
Lele Jima is a cryptocurrency enthusiast and journalist who is focused on educating people about how the nascent asset class is transforming the world. Aside from cryptocurrency-related activities, Jima is a lover of sports and music.

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