Ripple CLO Reveals What Next With Cross Appeal Against SEC

Ripple’s Chief Legal Officer (CLO), Stuart Alderoty, has shared insights into the next steps following the SEC’s decision to drop its appeal against Ripple.

The move marks a significant shift in the ongoing legal battle, with Ripple now in a stronger position to shape the future of its case against the U.S. Securities and Exchange Commission (SEC). In a tweet, Alderoty celebrated the development as a victory not only for Ripple but also for the broader crypto industry.

US SEC Withdraws Appeal Against Ripple

After years of legal battles, the US SEC has decided to drop its appeal against Ripple, which initially stemmed from the agency’s claims that Ripple had sold XRP as an unregistered security. This can be considered as a significant shift in the SEC case as it affords Ripple much needed reprieve from constant litigation.

The decision according to Stuart Alderoty, Ripple’s CLO, is revolutionary for the crypto industry.

This withdrawal of the appeal of the SEC is in respect of one aspect of the case covering program and secondary market offering of XRP. Nevertheless, Alderoty emphasized that even though this was a decisive victory from the legal point of view, Ripple is not out of decisions yet.

“We will assess how to proceed with the cross appeal,” as Alderoty said regarding Ripple’s ongoing case regarding the $125 million penalty, as well as the restraining order to restrain Ripple from selling XRP to institutions.

Ripple Legal Strategy Moving Forward

However, given that the SEC is no longer actively pressing charges against Ripple, the company is in a much better place to deliberate on its legal standing. Ripple’s next moves could be the further pursuit of cross-appeal, which may help provide more legal insight into XRP.

If Ripple decides to proceed with the appeal, it might lead to a definitive determination from a higher court regarding whether investment contracts need specific contracts.

On the other hand, Ripple can decide to shun any hope of an appeal and instead seek to address the remaining fine and injunction. Ripple’s legal team may also move for a settlement with the SEC to come to a new agreement that will decrease the penalty. While Alderoty did not disclose further details about the company’s strategy, he reassured everyone that Ripple is now at the wheel.

“Ripple is in the driver’s seat,” he concluded.

Concurrently, according to Alderoty, the company will now be able to pursue growth without the distraction of prolonged litigation.

XRP ETF Applications See Boost in Chances of Approval

The market also reacted to the decision of the SEC not to appeal as it boosted the potential of seeing an XRP Exchange-Traded Fund (ETF) approved soon.

There are now several filings of an XRP ETF, including Bitwise, WisdomTree, 21Shares, ProShares, Franklin Templeton, Canary Capital, CoinShares, and Volatility Shares. Some of these firms are among the top contenders that are interested in developing a product that brings regulated exposure to XRP.

Concurrently, following Ripple’s legal victory, the chances of the SEC approving XRP ETF applications this year increased significantly. On Wednesday, Polymarket saw a rise in the probability of approval, with chances jumping from 77% to 79% after the news broke.