Ripple’s Chief Legal Officer, Stuart Alderoty, has disclosed on social media the pre-lawsuit settlement offer from the U.S. SEC regarding XRP’s security status.
Key Takeaways
- Ripple’s CLO, Stuart Alderoty, unveils the SEC’s pre-lawsuit settlement offer, revealing terms that include recognizing XRP as a security and providing a compliance window.
- Ripple rejects the settlement offer, leading to the SEC officially filing a lawsuit on December 22, 2020, alleging securities law violations.
- U.S. District Judge rules on July 13 that XRP, in itself, is not a security, marking a significant victory for Ripple in the legal battle.
- Alderoty highlights Ripple’s success in challenging the SEC’s hypocrisy and inconsistent arguments, emphasizing the company’s unexpected triumph in the lawsuit.
Revelation of SEC’s Pre-Lawsuit Offer
Ripple’s Chief Legal Officer, Stuart Alderoty, recently took to social media to disclose SEC demand in pre-lawsuit settlement offer from the U.S. Securities and Exchange Commission (SEC).
According to Alderoty, the SEC’s proposal outlined the acknowledgment of XRP as a security and included a limited timeframe for the market to align with existing securities laws.
Ripple’s Rejection and Subsequent Lawsuit
In a pivotal decision, Ripple opted to reject the SEC’s settlement offer, asserting its confidence in XRP not being a security and pointing to the absence of a clear crypto compliance framework at the time.
This rejection led to the SEC officially filing a lawsuit against Ripple on December 22, 2020, alleging violations of securities law.
Ripple CLO Reveals SEC Pre-lawsuit Settlement Offer on XRP Security Status https://t.co/TzNETJlaHU via @The Crypto Basic
— DJ Peter Vas (33k) (@PeterVas6) December 23, 2023
Legal Victory and Exposing SEC’s Hypocrisy
A significant turning point occurred in the legal battle when, on July 13, a U.S. District Judge ruled that XRP, on its own, does not qualify as a security. Stuart Alderoty emphasized that this ruling centered on proving that XRP, as a standalone entity, is not a security.
To Conclude
As the Ripple-SEC lawsuit enters its third year, it has reached the remedies stage, where the court is deliberating on suitable penalties for Ripple’s purported securities law violations.
The final judgment is pending, and once issued, the SEC will decide whether to appeal the decision at the Second Circuit or consider a settlement with Ripple, marking a critical juncture in this prolonged legal saga.
