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HomeCrypto NewsMarketXRP is Not a Security As Terra Case Changes Nothing About Ripple Ruling: Stuart Alderoty

XRP is Not a Security As Terra Case Changes Nothing About Ripple Ruling: Stuart Alderoty


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The Chief Legal Officer of Ripple has clarified that the recent ruling in the TerraForm Labs’ case does not change the fact that XRP is not a security.

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In a tweet today, Ripple’s chief legal officer Stuart Alderoty reacted to the widespread confusion regarding a recent ruling in the lawsuit between the SEC and TerraForm Labs.

Federal Judge Rejects Ripple Ruling

For context, US District Judge Jed Rakoff rejected TerraForm Labs’ approach to use Judge Torres’ decision in the Ripple case to dismiss the SEC’s lawsuit against the company and its founder, Do Kwon.

Recall that Judge Torres drew a distinction based on how Ripple sold XRP to investors. In the ruling, Judge Torres found that Ripple’s XRP sales to institutional investors were securities. In contrast, she ruled that the company’s programmatic sales on digital exchanges were not securities.

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Interestingly, TerraForm Labs used Judge Torres’ ruling as a legal precedent to dismiss the SEC’s case.

However, the SEC filed a countermotion stating that Judge Torres’ erred in her ruling. In response, Judge Rakoff rejected Judge Torres’ ruling, thus questioning Ripple’s victory.

According to Judge Rakoff, cryptos should not be differentiated based on how they are sold.

Ripple Chief Legal Officer Reacts

Meanwhile, the decision has stirred confusion in the market, prompting Alderoty to provide clarity. In his tweet, Alderoty said Judge Rakoff’s ruling does not change the fact that XRP is not a security.

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He argued that the TerraForm Labs’ case is still in its early stages. Consequently, the judge presiding over the case will mostly accept everything the SEC alleges as true.

Furthermore, Alderoty clarified that Judge Torres issued her decision in the Ripple lawsuit after a full factual record developed for over two years was presented in the court.

Alderoty Invites Other Legal Experts For Comment

Ripple’s chief legal officer invited other legal experts to provide an analysis of Judge Rakoff’s comment on the Ripple ruling.

Notably, top lawyer Jeremy Hogan has already declared his intention to weigh into the matter. Attorney Hogan noted that he would make a video to explain the development. 

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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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