XRP’s Regulatory Clarity Remains Rock-Solid as Ripple’s Legal Chief Confirms Its Non-Security Status is Untouched, Even After a Court Setback Stalls a Proposed SEC Deal
Ripple Legal Chief Defuses Panic After Court Rejects SEC Deal Over XRP
Ripple’s chief legal officer, Stuart Alderoty, addressed the crypto community on Thursday following a court ruling that denied a joint request by Ripple Labs and the U.S. Securities and Exchange Commission (SEC) to amend a previous judgment in their ongoing case over XRP. Writing on social media platform X, Alderoty clarified that the court’s decision does not undo Ripple’s key legal victories, stating:
Nothing in today’s order changes Ripple’s wins (i.e. XRP is not a security, etc).
The Ripple legal chief explained that the ruling concerns procedural issues tied to the dismissal of Ripple’s cross-appeal, rather than any substantive finding about XRP. “This is about procedural concerns with the dismissal of Ripple’s cross-appeal,” he said.
His statement follows a decision by Judge Analisa Torres of the U.S. District Court for the Southern District of New York, who rejected a motion jointly filed by Ripple and the SEC to dissolve an injunction and reduce a $125 million penalty to $50 million. Judge Torres ruled that the motion was “procedurally improper,” stating it should have been brought under Rule 60, which governs relief from final judgments and requires proof of “exceptional circumstances.” The injunction, which prohibits Ripple from future securities violations, and the full penalty, remain in effect while the case continues.
Alderoty Emphasized That Both Ripple and the SEC Are Still Aligned in Resolving the Matter Over the Sale of XRP
Ripple and the SEC are fully in agreement to resolve this case and will revisit this issue with the court, together.
The parties reached a tentative agreement on May 8 to settle the matter by reducing the penalty and lifting the injunction. While Judge Torres’ decision halts that plan for now, it leaves the door open for a renewed and properly filed motion. The clarification by Ripple’s chief legal officer reassures stakeholders that the landmark 2023 decision regarding XRP remains unaffected and signals that cooperation between the company and the regulator is ongoing.