Ripple Legal Chief outlines potential SEC appeal outcomes

Ripple’s (CRYPTO:XRP) Chief Legal Officer, Stuart Alderoty, recently discussed the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC), focusing on two possible outcomes for the SEC’s appeal. 

Alderoty stated that the Second Circuit Court of Appeals might either uphold District Judge Analisa Torres’ initial ruling or potentially broaden it. 

He noted, "The best the SEC can hope for (and it’s a remote hope) is a remand." 

A remand would mean that Judge Torres would once again review Ripple’s defenses, including the pivotal Fair Notice defense. 

This defense questions whether an individual of “ordinary intelligence” could discern what the law prohibits. 

Alderoty commented, “The SEC could end up arguing to Judge Torres that she wasn’t a person of ‘ordinary intelligence’ when she ruled against them. Awkward.” 

Drawing an interesting analogy, Alderoty likened the legal case to the storyline of Moby Dick, with SEC Chair Gary Gensler playing the role of Captain Ahab. 

He humorously added that the case now feels like “Moby Dick meets My Cousin Vinny.” 

Despite the ongoing appeal, Alderoty reiterated that Judge Torres’ decision declaring XRP as not a security in retail sales remains intact. 

While the SEC is contesting several other elements of the July 2023 ruling, Ripple is preparing a cross-appeal in response. 

This legal battle holds significant implications for the future of cryptocurrency regulations and the classification of digital assets like XRP.

At the time of writing, the XRP price was $0.5426.