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Terra Judgment ‘Changes Nothing’ for XRP Win: Ripple Legal Officer

Published August 2, 2023 1:20 PM
Omar Elorfaly
Published August 2, 2023 1:20 PM

Key Takeaways

  • Ripple executives are not worried about the judge’s ruling in the Terra case
  • Crypto companies are doing a better job clarifying legal stances on digital assets than the government

The XRP/Ripple case has understandably taken over crypto news headlines as of late. The case serves as a precedent in which the SEC was proven wrong for the first time when classifying a token as a security, according to a US judge.

As a result, many crypto companies currently dealing with SEC litigation are banking on Ripple’s triumph to dismiss their own cases. Among the most notable names on that list is Terra.

Unlucky for Terra, the company did not receive the ruling it had hoped for. Instead, a different US judge ruled in favor of the SEC to move on with the case. 

While the ruling in Terra’s case may have caused confusion and alarm, citing fears regarding the Ripple case, Ripple’s Chief Legal Officer claims it “changes NOTHING .”

Ripple Is Not A Security

Ripple’s Chief Legal Officer, Stuart Alderoty, took to Twitter  to address concerns regarding the ruling in Terra’s case. 

Alderoty’s main point in his argument concerns the longevity of the lawsuits. He highlights how Ripple has dealt with SEC litigation for over two years.

Throughout these years, Ripple has jumped through several hoops to make a solid argument that XRP should not be considered a security, including requesting the release of the Hinman documents. And, finally, after more than two years, US District Judge Analisa Torres made an informed decision that Ripple was right all along.

On the other hand, “The Terra case is just starting,” according to Alderoty. He makes a strong point by saying that at this case stage, “the Judge has to accept everything that the SEC alleges as true (for now).”

On top of that, Ripple’s legal expert points out that the SEC deliberately misread Judge Torres’ reasoning, citing an example of investors not being able to put their money in secondary markets if they are unsure who the money will be going to.

CCN reached out to Alderoty for commentary but did not receive a reply at the time of publishing.

Ripple After Hours

Perhaps as an act of mockery against the SEC, namely Gary Gensler, Alderoty posted a video  on his own Twitter page explaining the difference between securities and commodities in a “For Dummies” fashion. To rub even more salt in the wound, he repeatedly mentions Gensler and criticizes his views on crypto.

“An investment contract is not like a traditional share of stock, And, anyone who tells you that..well, let’s just say that they’re trying to confuse you.”

“Some would like you to think that a digital token can in and of itself be a ‘digital asset security.’ It can’t. Standing alone, it’s just a commodity or a virtual currency. As a virtual currency, you can use it for a payment.”

“The Securities and Exchange Commission only has jurisdiction over securities, not orange groves. And, they don’t like that. Like a hammer, they want everything to be a nail.”

Alderoty commented above as he displayed pictures of Gensler and the SEC plaque in the background.

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