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he Dispute Continues: Ripple's Lawyer Attacks SEC Over “Constructed” Term

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Finixyta
September 04, 2024

# The Dispute Continues: Ripple's Lawyer Attacks SEC Over “Constructed” Term

Alright, folks, let's dive into the latest developments in the ongoing dispute between Ripple and the SEC. Ripple's chief legal officer, Stuart Alderoty, has once again criticized the SEC's use of a specific term. So, buckle up and let's get into it.

## Ripple vs. SEC: The Dispute Continues

SEC Chief Gary Gensler has been under fire recently, and the dispute between Ripple and the SEC shows no signs of abating. Despite Ripple Labs' recent legal victory in their long-running battle with the SEC, the conflict continues to escalate.

In a recent X-post, Ripple's chief legal officer, Stuart Alderoty, took aim at the SEC's repeated use of the term "crypto-asset-security." Alderoty argues that this term is entirely fabricated and has no legal basis.

The background to this dispute is a new report from the SEC, which warned that it could challenge any plan by the collapsed crypto exchange FTX to use stablecoins for creditor repayments. In this report, the SEC referred to "crypto-asset-securities," essentially labeling them as securities.

“The term ‘crypto-asset-security’ is nowhere to be found in any law – it is a made-up term without legal foundation,” Alderoty wrote. He added, “The SEC must stop trying to deceive the judges by using it.”

The joy over Ripple's court victory seems to have already faded in the crypto market. At the time of writing, XRP is trading at $0.55, a 3.47 percent drop compared to the previous day.

As BTC-ECHO reported, following the latest ruling by U.S. District Judge Torres, Ripple is required to pay a fine of $125 million, despite the token being classified as a security in sales to institutional investors.

Ripple's management celebrated this outcome as a victory against the SEC, as the regulator, led by Gary Gensler, had initially sought a total fine of $2 billion.

However, both parties have the option to appeal the ruling within 60 days of its announcement.

Even if the ruling stands, it could have far-reaching consequences for the crypto industry. The SEC could use this case as a precedent to take action against other crypto companies selling similar tokens.

## The Bottom Line

So, there you have it, folks. The dispute between Ripple and the SEC continues, with Ripple's chief legal officer Stuart Alderoty criticizing the SEC's use of the term "crypto-asset-security." Whether you're a seasoned crypto investor or just starting out, it's important to stay informed and stay vigilant.

Crypto is a wild and exciting world, but it's also a complex one. So, always do your own research, consult with professionals, and remember that what goes up can also come crashing down.

## Disclaimer

Alright, folks, before we wrap up, it's time for the obligatory disclaimer. This article is for entertainment and educational purposes only. It's not financial advice, and I'm not your financial advisor. Always do your own research and consult with a professional before making any investment decisions.

Crypto is a wild and unpredictable beast, and what goes up can just as easily come crashing back down. So, be smart, be cautious, and most importantly, have fun out there. After all, isn't that what life's all about?

Until next time, stay curious, stay informed, and keep your eyes on the prize. The world of finance is waiting, and it's a wild ride. So, buckle up and let's enjoy the journey together.

Happy investing, folks!