Rippleās Chief Legal Officer Stuart Alderoty has made a strong statement regarding the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC).
With the case heading to the Second Circuit Court of Appeals, Alderoty offered his own perspective on what’s next.
āThe Second Circuit will either affirm Judge Torres or expand on her decision,ā Alderoty said in a statement. āThe best the SEC can hope for (which is a distant hope) is a retrial.ā
The SEC had filed a ātentativeā appeal earlier this year after Judge Analisa Torres ruled in Rippleās favor on several key points, particularly regarding the classification of Rippleās native token, XRP. However, the appeal was denied, which Alderoty said left the SEC in a precarious position. He noted that during the SECās unsuccessful appeal, Judge Torres made it clear that Rippleās defenses, including the all-important Fair Notice argument, would resurface if the case were to be retried.
According to Alderoty, the Fair Notice defense hinges on whether a person of āordinary intelligenceā would have been aware of the prohibitions of the law in Rippleās case. Alderoty noted the irony of the SECās potential future arguments, saying: āThe SEC may argue to Judge Torres that she was not a person of āordinary intelligenceā when she ruled against them. Strange.ā
*This is not investment advice.