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Ripple’s Stu Alderoty “Not Surprised” If SEC Launches Appeal
- Ripple’s CLO Stuart Alderoty is uncertain but wouldn’t be surprised if the SEC decides to appeal the recent court ruling.
- The SEC, having sought US$2 billion, may consider appealing despite a US$125 million fine against Ripple.
- Appeals are challenging as the Second Circuit court seldom reverses lower court decisions, with less than a 10% overturn rate.
Is the case Ripple vs SEC finally over, or will one of the parties appeal? Stuart Alderoty, Ripple’s chief legal officer said, he doesn’t think there will be an appeal, but won’t be surprised if there is.
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As a refresher: In December 2020, the SEC filed a lawsuit against Ripple, accusing it of illegally selling XRP as unregistered securities. The case, handled in the Southern District of New York, concluded in July 2023 when Judge Analisa Torres found that Ripple’s direct sales to institutional clients violated federal securities laws, but sales through exchanges to retail clients did not.
Attempts by the SEC to appeal this decision were unsuccessful, and charges against Ripple’s CEO and Chairman were dropped in October. Recently, Ripple was ordered to pay US$125 million (AU$185.5 million) in fines and received an injunction against future legal violations.
It doesn’t seem like Ripple would want to appeal, because for them this really counts as a win, as Ripple CEO Brad Garlinghouse said:
SEC Has 60 Days to Appeal
The SEC on the other hand may feel different, although it too claimed a victory. However, because the regulator had asked for almost US$2 billion (AU$3 billion), there is a chance that the SEC wants to have the sentence overturned.
While Alderoty said he wouldn’t advise the SEC to appeal if he was working for them, he also said he wouldn’t be surprised if they did.
I think the finality of the judgment, hopefully people won’t be distracted by if the SEC is going to appeal, what happens if they appeal […] even if they do appeal, I would just tell everyone ‘take a deep breath’.
Stuart Alderoty, Ripple’s Chief Legal Officer Related: Miami Heat’s Jimmy Butler, BitBoy Agree on Settlement with Binance Investors
However, if there is any appeal, each party has 60 days from the court decision. But Alderoty also added that an appeal would be a long, hard slog for the SEC, as appeals courts do not typically overturn district judges’ rulings.
Statistically, the court of appeals – specifically the second circuit where this case will go – reverses lower courts less than ten percent of the time.
Stuart Alderoty, Ripple’s Chief Legal Officer 
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
