Stuart Alderoty, general counsel of Ripple, has resisted the Securities and Exchange Commission’s (SEC) aggressive legal actions this week against prominent participants in the cryptocurrency industry.
Alderoty recently questioned the SEC’s tactics in a tweet, describing them as “shock and awe,” while retaining his belief in the rule of law. This comes in the wake of litigation the SEC filed against well-known cryptocurrency exchanges Coinbase and Binance, accusing them of, among other things, functioning as unregistered national securities exchanges.
Several well-known cryptocurrencies, including Cardano (ADA), Solana (SOL), and Polygon (MATIC), are accused by the SEC of being unregistered securities.
This lengthy list also includes the BNB stablecoin from Binance, the BUSD cryptocurrency, and a wide range of other digital assets including FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI. The consequences were felt right away, with companies like Robinhood delisting Cardano, MATIC, and SOL as a result of the legal action.
The conclusion of the Ripple case becomes even more crucial in light of these developments. According to James “MetaLawMan” Murphy on Twitter, the SEC’s claims against Coinbase and Binance might be completely overturned if Judge Torres determines that XRP tokens sold on secondary markets are not securities in the SEC vs. Ripple case. Of course, the opposite is also true; a decision in the SEC’s favour would greatly strengthen their case.
There are a few limitations, though. Even if Judge Torres decides in Ripple’s favour, as stated by MetaLawMan, his ruling won’t be binding precedent for subsequent instances. Judge Rearden, who was assigned to the Coinbase case and has barely been a judge for six months, would, nevertheless, tend to agree with Judge Torres’ position.
The SEC’s charges against Coinbase and Binance differ from one another, further complicating the situation. Regardless of the first findings, it is realistic to assume that years of appeals will follow, making this an important event to follow in the field of cryptocurrency regulation.
