Ripple’s Lawyer: XRP Ruling’s Positive Impact On Binance And Coinbase In SEC Lawsuits

Stuart Alderoty, general counsel at Ripple, argues that the outcome of the SEC litigation will be favorable for the larger cryptocurrency business.

In an interview on the Chain Reaction podcast, Alderoty claims that the Ripple decision found that digital tokens traded on cryptocurrency exchanges are not securities.

According to Ripple’s chief legal officer, The decision may be helpful in the litigation the SEC launched against Binance and Coinbase last month.

According to the central charge in the Coinbase complaint and the Binance lawsuit, An exchange trading a digital token must register as a national security exchange. In their case, that was rebuked by discharge.

They say that when a digital token like XRP is traded on a digital asset exchange, there is no security because the buyer and the seller don’t know each other. This is because there is no contract for an investment being made. Therefore, the SEC has no responsibility.

He thinks that The Coinbase case will benefit from the verdict, and the Binance case should also benefit from that assertion.

Alderoty discusses what might happen if the SEC challenges the decision, which was partially in Ripple’s favor:

“In terms of the next steps, the SEC may decide to appeal, and they have signaled in the weeks since the decision in various ways that the staff will be recommending to the Commission that they file an appeal.

So I don’t think that they are very happy with the decision and the part of the decision that we’ve been talking about that the token itself is not a contract for investment; you have to look at the facts and circumstances. They are not happy about that. They will probably be taking it to appeal.

We don’t shy away from an appeal, and we think the judge got that right, and we think that was faithful application of the law, and we think that the courts of appeal will not only affirm that but maybe even amplify that to an even greater extent.”