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Ripple’s chief legal officer, Stuart Alderoty, recently discussed the U.S. Securities and Exchange Commission’s (SEC) actions against the digital asset XRP on a social media platform. Alderoty on Saturday on social media platform X said that before suing Ripple, the SEC had proposed a settlement that would have labeled XRP as a security, a move that could have significantly altered the digital asset industry.
Alderoty shared, “Before the SEC sued Ripple, Chris and Brad (three years ago today), they offered us the following settlement: the SEC would announce to the market that XRP is a security and the market would be given a short window to ‘come into compliance.’”
However, Ripple declined this offer. According to Alderoty, the reasons were clear: “We said no because: (1) XRP is not a security, and (2) the SEC never built a framework for crypto compliance. No matter the spin that Clayton, Hinman, Gensler or anyone else puts on this case now, it was always about one thing – proving that XRP is not, in and of itself, a security.”
Ripple’s stance was validated when Judge Analisa Torres ruled in July that the automated, open-market sales of XRP were not security offerings, contradicting the SEC’s claims. This decision marked a significant setback for SEC Chair Gary Gensler.
Alderoty commented on this outcome, saying, “Biggest crypto story of 2023: Gary Gensler suffered his ‘worst loss’ when Judge Torres ruled that XRP is not a security… Tokens themselves are not securities. That’s the law of the land.”