Stuart Alderoty, chief legal officer of Ripple Labs, announced that he rejected a settlement offer from the US Securities and Exchange Commission (SEC) three years ago. With this important development, new details of the legal struggle of Ripple’s XRP token have come to light. Here are the details…
Settlement offer for Ripple
Stuart Alderoty, chief legal officer of Ripple Labs, a well-known blockchain company, recently used X (formerly Twitter) to shed light on an important announcement. In a tweet, Alderoty revealed details of an early settlement offer made by the Securities and Exchange Commission (SEC) to Ripple three years ago, before legal proceedings were initiated against the blockchain giant and its top executives Brad Garlinghouse and Chris Larsen.
Alderoty’s tweet revealed that the SEC had proposed a deal to Ripple and its CEO Brad Garlinghouse in 2020. The terms of the offering included the SEC declaring XRP a publicly traded security, followed by a short window for the market to ‘come into compliance’. However, Ripple immediately rejected the offer, citing two important reasons. First, Ripple argued that XRP is not a security, and second, Alderoty emphasized that the SEC has failed to create a framework for cryptocurrency compliance.
The legal process has been going on for three years
The legal battle between Ripple and the SEC spanned three years, and the company was determined to prove that XRP was not a security. Alderoty acknowledged that Ripple took significant risks and risked everything to defend its position. Despite the skepticism of many, Ripple managed to expose the SEC as a “hypocritical tyrant” during the courtroom drama. Alderoty stated that this victory allowed the US crypto industry to “live to fight another day.”
According to Alderoty’s statement, in 2020, the SEC submitted a settlement offer to Ripple and its CEO Brad Garlinghouse. Terms of the offer included the SEC declaring XRP a security and giving the market a “short window to adjust.” However, Ripple claimed that this offer was rejected and that XRP had gained value as a security and that the SEC had failed to create one by framing the cryptocurrency for compliance.
There is a determination that XRP is not a security
This landmark case featured a pivotal moment when federal judge Analisa Torres ruled that XRP sales should not be classified as total coin amount sales and the SEC dropped personal charges against Chris Larsen and Brad Garlinghouse. While Ripple awaits final resolution of the case within the next year, Alderoty is concerned about the SEC’s overly involved stance and the power of other major players in the cryptocurrency market. While the cryptocurrency community is keeping a close eye on this issue, the potential impacts that could shape the SEC’s crypto regulations are eagerly awaited.
According to Alderoty, Ripple continued to pursue the case with determination despite the high risks and general skepticism. The company’s main budget was to prove that XRP was not actually a security. Alderoty noted the risks to the outcome and emphasized that Ripple has exposed the SEC as a “hypocritical bully” in the court drama. This victory not only proved Ripple right, but also breathed new life into the US cryptocurrency industry.
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