In the ongoing legal tussle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC), recent developments have sparked speculation about the possibility of a settlement. However, Ripple’s Chief Legal Officer (CLO), Stuart Alderoty, remains optimistic about the company’s chances if the legal battle continues.
The legal saga took a notable turn with Judge Torres’ verdict, acknowledging that Ripple violated the law by selling XRP directly to institutional investors but not when conducting sales on crypto exchanges. While considered a victory for Ripple, the SEC might appeal the decision, potentially resetting the legal proceedings.
In a noteworthy move, the SEC scheduled a closed-door meeting on November 30, involving Commissioners and key staff. The agenda explicitly mentioned discussions related to settlement and the resolution of SEC litigation, leading to speculation that the Ripple case was a focal point.
As rumors circulated about Ripple’s potential representation at the meeting, the prospect of a settlement surfaced. However, Ripple’s CLO, Stuart Alderoty, expressed confidence in the firm’s legal position. Despite the allure of settling high-stakes cases, Alderoty hinted that Ripple might pursue victory in court.
Addressing the speculation on X (formerly Twitter), Alderoty referenced a Wall Street Journal article critiquing the SEC’s track record in the Supreme Court. The article highlighted instances where the Supreme Court ruled against the SEC, questioning its authority. Notably, the SEC’s recent case, SEC v. George Jarkesy, involves a legal challenge to the agency’s ability to file enforcement actions outside of federal court. The outcome of this case could impact the SEC’s overall authority.
Alderoty emphasized that the SEC is not infallible, pointing to the Supreme Court’s trend of limiting government agencies’ powers and empowering individuals and businesses. While a judgment against the SEC in a different case may not directly influence the Ripple case, it reflects a broader trend challenging the legal basis of the SEC’s enforcement actions.
As Ripple assesses its options amid speculations about a potential settlement, Alderoty’s confidence in the legal system suggests the company may be prepared to navigate the complexities of the courtroom to achieve its objectives.