Stuart Alderoty Archives

Ripple's top legal executive addressed the crypto community this week to clear up confusion surrounding a recent court decision in the ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC). Despite the judge denying a joint request by both parties, Ripple confirmed that the ruling does not affect the major legal outcome that XRP is not a security. Good to know XRP’s non-security status remains intact despite court’s procedural rejection. Judge blocked a joint move to reduce Ripple’s $125 million penalty to $50 million. Ripple and the SEC still aim to settle and will refile a motion. The statement came from Ripple’s Chief Legal Officer, Stuart Alderoty, who posted on X (formerly Twitter) after Judge Analisa Torres rejected a motion to amend an earlier judgment. That motion had asked the court to dissolve an injunction and lower Ripple’s penalty, but was dismissed as "procedurally improper." Alderoty clarified, “Nothing in today’s order changes Ripple’s wins (i.e. XRP is not a security, etc).” He explained that the issue at hand was procedural and did not revisit or reverse any key legal rulings about XRP. Judge Torres based her decision on technical grounds. The joint request from Ripple and the SEC should have been filed under Rule 60, which allows for changes to a final judgment only under “exceptional circumstances.” Because the motion did not follow that protocol, the judge declined to accept it. Ripple and SEC still working together Despite the rejection, both Ripple and the SEC continue to work toward a resolution. They had previously reached a tentative agreement on May 8 to settle part of the case by reducing the penalty and lifting the injunction. Alderoty reassured that they will “revisit this issue with the court, together.” For now, the existing injunction that bars Ripple from committing future securities violations remains active, and the original $125 million penalty stands. However, Ripple’s legal team made it clear that the core outcome from the 2023 ruling—that XRP itself is not a security when traded on public exchanges—is still in place and unaffected. The case remains ongoing, but both sides appear committed to working together on next steps. A properly filed motion could bring the same request back to the court at a later date.

Stuart Alderoty

Ripple Says XRP Still Not a Security Despite Legal Setback

Ripple CLO Stuart Alderoty Takes Aim at SEC Over OpenSea NFT Wells Notice

Ripple Lawyer Downplays Fear of SEC in Crypto World