Ripple CLO: No Clear Crypto Laws Drove SEC to Drop Legal Fight

In a recent segment of Ripple’s “Crypto in One Minute,” Chief Legal Officer Stuart Alderoty revealed a critical factor behind the U.S. Securities and Exchange Commission’s (SEC) decision to abandon its appeal in the XRP lawsuit. According to Alderoty, the SEC never had a solid legal foundation for launching its case against Ripple in the first place.

SEC Withdraws Multiple Crypto Lawsuits

The SEC’s move to drop its appeal in the Ripple case has significantly influenced the broader cryptocurrency landscape. However, this action also raised questions about the underlying reasons for the regulator’s sudden change in direction. As Alderoty emphasised, the real issue is why the SEC initiated the case.

Expanding on his point, Alderoty noted that the SEC has also backed away from several major investigations involving other top crypto firms. These include Coinbase, ConsenSys, Kraken, Yuga Labs, and Immutable. He argued that this widespread rollback signals a broader shift in the SEC’s strategy, not just a one-off decision related to Ripple.

Lack of Clear Crypto Laws Cited as Core Issue

Alderoty stressed that U.S. crypto companies have long operated without clear guidance. “The SEC has now admitted what we’ve always been saying,” he remarked. “You can’t bring enforcement actions for violating the law without first defining what that law is.”

He believes this lack of regulatory clarity has undermined both compliance and innovation. Therefore, Ripple intends to move forward by focusing on business growth rather than ongoing litigation.

Looking ahead, Alderoty hoped that the SEC would collaborate with Congress to develop coherent crypto regulations. These rules, he noted, must protect investors, promote market integrity, eliminate bad actors, and support innovation.

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By dropping its case, the SEC acknowledges the need for a more structured and transparent approach. Ripple, meanwhile, remains committed to helping clean up the regulatory environment and advancing the industry beyond courtroom battles.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.