Regulatory clarity regarding $XRP remains unshaken, as Ripple's chief legal officer confirms that its non-security status remains intact, even as the court defeat delays the proposed deal with the SEC.
Ripple's chief legal officer calms the panic after the court's rejection of the deal with the SEC regarding XRP.
Ripple's chief legal officer, Stuart Alderoti, addressed the crypto community on Thursday following the court ruling that rejected the joint request by Ripple Labs and the U.S. Securities and Exchange Commission (SEC) to modify a previous ruling in their ongoing XRP case. Writing on the social platform X, Alderoti clarified that the court's decision does not overturn Ripple's key legal victories, stating:
Nothing in today's ruling changes Ripple's victory (i.e., XRP is not a security, etc.).
Ripple's chief legal officer explained that the verdict concerns procedural issues related to the dismissal of Ripple's cross-appeal, rather than any substantive finding about XRP. 'This is about procedural issues with the dismissal of Ripple's cross-appeal,' he said.
His statement follows the decision by Judge Analisa Torres of the U.S. District Court for the Southern District of New York, who denied a motion jointly filed by Ripple and the SEC to lift the injunction and reduce the fine from $125 million to $50 million. Judge Torres ruled that the motion was 'procedurally improper,' stating that it should have been filed under Rule 60, which governs relief from final judgments and requires proof of 'extraordinary circumstances.' The injunction prohibiting Ripple from future securities violations and the full fine remain in effect while the case continues.
Alderoti emphasized that both Ripple and the SEC remain united in their intention to resolve the issue regarding the sale of XRP, stating:
Ripple and the SEC are fully agreed to resolve this matter and will discuss it with the court together again.
The parties reached a preliminary agreement on May 8 to settle the issue by reducing the fine and lifting the injunction. Although Judge Torres' ruling suspends this plan for the moment, it leaves the door open for a refiled and properly documented motion. The clarification from Ripple's chief legal officer assures stakeholders that the landmark 2023 ruling regarding XRP remains unchanged and signals ongoing cooperation between the company and the regulator.
