Ripple vs. SEC: Alderoty Says Detractors Should First Understand Ripple Arguments Before Debunking Them

Ripple’s general counsel knocked Coindesk over its recent op-ed about the ongoing SEC lawsuit.

Ripple’s legal counsel Stuart Alderoty has slammed cryptocurrency media outlet Coindesk for its recent op-ed about the Ripple lawsuit. Coindesk columnist Preston Byrne said in the article that he expects Ripple to lose its case against the SEC “sooner or later.” 

Bryme noted that Alderoty’s argument is akin to denial. Ripple’s general counsel “argue that there was no investment contract during the sale of XRP because there is no formal contract between Ripple and XRP purchasers and that the tokens were sold for consumptive use,” Bryme said. 

Alderoty Response to Coindesk Op-ed

Reacting to Coindesk’s recent Op-Ed article, Alderoty urged the media outlet, which he described as detractors, to understand Ripple’s legal positions before debunking them. He noted that it was clearly stated in Ripple’s summary judgment reply brief filed on December 2 that the blockchain company does not rely on the conclusion that XRP was purchased for use.

“[…] Though such a conclusion, as shown by amici briefs and the non-speculative evidence, would defeat the SEC’s claims,” he added. 

Alderoty went a step further to summarize Ripple’s “actual arguments” in the ongoing lawsuit in three points. According to Ripple’s chief legal officer, Ripple does not have a contract for investment with any XRP holder. 

He said the Securities and Exchange Commission could not satisfy a single ingredient of the Howey Test in the case, adding that the Silicon Valley tech company does not concede any of the Howey Test’s prongs.

Alderoty asserted that Bryme’s claim about the SEC’s reliance on a garden variety of ICO cases meeting all limbs of the Howey Test does not have a place in the ongoing lawsuit. 

Furthermore, Alderoty said the SEC and other detractors have been trying to recast Ripple’s legal positions because they do not have answers to the company’s arguments. 

The reason the SEC and detractors try to recast our arguments is they have no answer for the arguments we actually make.

— Stuart Alderoty (@s_alderoty) December 7, 2022

Meanwhile, Alderoty said he is glad that Coindesk also recognizes that the SEC’s invitation to crypto companies, asking them to come in and register, is impossible.

“I’m glad even the detractors recognize that the SEC’s invitation to come in and register is like trying to take a Ford Model T into space,” he said.