SEC Has Apologized to Ripple for Calling XRP a Security, Chief Legal Officer Says

In the ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC), Ripple’s Chief Legal Officer, Stuart Alderoty, has declared that the SEC has already apologized to Ripple for labeling XRP as a security.

Alderoty made the statement while announcing Ripple’s latest legal strategy to thwart any potential moves by the SEC to file further lawsuits against the fintech company. According to Alderoty, Ripple Labs filed a cross-appeal on October 10 with the U.S. District Court of Appeals for the Southern District of New York to ensure that no legal options are left on the table.

Alderoty mentioned that the cross-appeal includes the controversial argument that “there can’t be an investment contract without essential rights and obligations found in a contract.”

The legal battle between Ripple and the SEC began when the commission accused Ripple of selling unregistered securities to investors through XRP.

“Accept Your Losses and Move On,” Ripple’s Brad Garlinghouse Advises SEC

In July 2023, Judge Analisa Torres ruled that the sale of XRP to the general public does not constitute the sale of securities. However, she also ruled that offering the cryptocurrency to institutional investors did violate securities laws.

Ripple Labs CEO Brad Garlinghouse, in a recent statement, urged the SEC and its Chair, Gary S. Gensler, to accept defeat and move on. Garlinghouse made the announcement on X (formerly Twitter) in response to the SEC’s ongoing efforts to clamp down on crypto assets, particularly through the legal battle with Ripple.

Garlinghouse’s comments followed a statement by Stuart Alderoty, who gave an update on the status of the lawsuit. Alderoty said that the SEC’s decision to appeal the recent judgment is an attempt to fight a lost battle by “clutching at straws.”

Garlinghouse further criticized the SEC, stating that instead of adhering to the rule of law, the financial watchdog is not being faithful in its application of regulations, nor is it providing clarity to industry players in the U.S. He accused the SEC of creating havoc in the U.S. fintech industry.

Garlinghouse expressed hope that Ripple’s latest legal moves would help put an end to the lawsuit and seal the fate of the SEC.

“Ripple led the industry in the first round of this legal battle, and we look forward to leading the way again in this round,” Garlinghouse said.