Ripple General Counsel slams the SEC’s “pathetic statement” on Judge Torres’ ruling.
The United States Securities and Exchange Commission (SEC) has finally responded to Judge Analisa Torres’ ruling regarding the Ripple lawsuit.
SEC’s Response to Ripple Ruling
In a statement sent to Fox Business yesterday, the SEC said it is pleased the court found that Ripple violated securities laws in certain circumstances via its offer and sale of XRP.
?BREAKING: The @SECGov responds to @FoxBusiness with a statement on today’s #Ripple ruling: pic.twitter.com/9rbggXkJSP
— Eleanor Terrett (@EleanorTerrett) July 13, 2023
Notably, the SEC was referring to Judge Torres’ ruling regarding Ripple’s past XRP sales to institutional investors, worth $728.9M. As reported today, Ripple’s General Counsel Stuart Alderoty said further court proceedings would be held regarding the issue.
The regulatory agency noted that the court agreed with its argument that the Howey test is the benchmark governing the securities analysis of crypto-related transactions. The SEC also said Judge Torres rejected “Ripple’s made-up test” regarding what constitutes an investment contract.
Furthermore, the SEC said Judge Torres dismissed Ripple’s fair notice argument because the Howey test is clear enough. It added that the court clarified that ignorance is not an excuse to violate securities law.
According to the SEC, it will continue to review Judge Torres’ decision. It is unclear whether the SEC will appeal the ruling, given that it lost some of its claims.
For instance, Judge Torres ruled that XRP sales by Ripple execs and other XRP distribution to developers, charities, and employees are non-securities.
Top Legal Experts Slam SEC
Meanwhile, top crypto legal officers have taken to Twitter to slam the regulatory agency over its response. Reacting to the comment, Katie Biber, Chief Legal Officer at Paradigm, advised the SEC to “do better.”
She noted that the SEC’s response to the ruling has the vibes of a young campaign hack spinning on bad facts v. a powerful government agency that is expected to always be honest at all times.
In response, Ripple’s General Counsel Stuart Alderoty agreed with Biber’s assertions. While describing the SEC’s statement as pathetic, Alderoty encouraged the SEC to take the loss it earned in the legal tussle.
Could not agree more with @katiebiber. Pathetic “statement” coming from the SEC today.
Take the loss. You earned it. https://t.co/NYajgKjjG1
— Stuart Alderoty (@s_alderoty) July 13, 2023
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