Ripple Chief Legal Officer slams US SEC’s argument against the payment giant


  • Stuart Alderoty, the Chief Legal Officer of Ripple, criticizes the US financial regulator’s argument against the payment giant. 
  • Alderoty drew a parallel between the 1946 Howey Test case at the Supreme Court and the SEC v. Ripple lawsuit. 
  • Alderoty argues that the Securities and Exchange Commission’s interpretation of the common enterprise is flawed. 

US financial regulator, Securities and Exchange Commission’s (SEC) lawsuit against Ripple, continues to drag on without a resolution. Ripple’s Chief Legal Officer Stuart Alderoty took a jab at the SEC’s interpretation of a “common enterprise” and drew parallels between the Howey Test case and SEC v. Ripple lawsuit. 

Also read: Lido begins recovery ahead of Version 2 rollout on the Ethereum blockchain, here’s where LDO is headed

Ripple’s Chief Legal Officer critiques the SEC’s understanding of common enterprise

Stuart Alderoty, the Chief Legal Officer of Ripple, recently tweeted about the 1946 Supreme Court case dubbed “the Howey test.” In the 1946 lawsuit, the US SEC was unsuccessful in its argument that an investment in a “common enterprise” was unnecessary, provided there was a “community of interest.”

Alderoty argues that the SEC was wrong in its 1946 argument and is wrong in its case against Ripple. Common interest is not the equivalent of common enterprise. 

In the SEC’s case against Ripple Labs, the regulator alleges that the firm conducted an unregistered securities offering worth $1.3 billion by selling XRP. Alderoty’s comments are aligned with Ripple’s efforts to tackle the SEC’s allegations.

In its allegations against Ripple, the SEC argues that XRP should be classified as a security, and the virtual asset’s sale requires securities registration. The firm has long disputed this categorization stating that the altcoin is not a security; the team is battling these allegations in the SEC’s lawsuit, awaiting a verdict from Judge Torres.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Bitcoin bull market is still going strong, on-chain data shows

Bitcoin bull market is still going strong, on-chain data shows

Bitcoin’s (BTC) price outlook remains positive in the short term despite its recent stabilization, on-chain data suggests, propelled by easing selling pressure by long-term holders and activity from large-wallet investors. 

More Bitcoin News

Dusk price sets the stage for a 20% rally

Dusk price sets the stage for a 20% rally

Dusk price is currently being rejected at around $0.426 level. The on-chain metric suggests DUSK growing network and dormant wallets are moving upwards again. A daily candlestick closing below $0.286 would invalidate the bullish thesis.

More Cryptocurrencies News

Digital asset inflows reach record high year-to-date

Digital asset inflows reach record high year-to-date

CoinShares' weekly digital asset flows, released on Tuesday, reveal that digital assets recorded a three-week consecutive rise in inflows, amounting to a record high of $14.9 billion already this year.

More Cryptocurrencies News

Bitcoin long-term holders begin re-accumulation after Semler Scientific and Mt Gox make major whale moves

Bitcoin long-term holders begin re-accumulation after Semler Scientific and Mt Gox make major whale moves

Bitcoin declined briefly from the $70,000 mark on Tuesday as Semler Scientific and Mt Gox made notable whale moves. Glassnode also shared key on-chain insights that breathe clarity into the market's current state.

More Bitcoin News

Bitcoin: BTC struggles, but $80K is at striking distance Premium

Bitcoin: BTC struggles, but $80K is at striking distance

Bitcoin (BTC) price is in a good position to resume the bull rally despite the recent struggle. Optimism will restart if BTC overcomes a critical hurdle and flips it into a foothold. In such a case, the pioneer crypto will be slated to push to a new all-time high (ATH). 

Read full analysis

BTC

ETH

XRP