Stuart Alderoty, Ripple’s senior legal representative, criticized the US Securities and Exchange Commission (SEC).
The lawsuit between the SEC and Ripple is still ongoing. However, Ripple’s chief legal officer criticized the SEC on some issues. Stuart Alderoty, Ripple’s senior legal representative, criticized the SEC, drawing a historical parallel to draw attention to the SEC’s missteps in its ongoing legal process. Alderoty stated in a recent tweet that the SEC misinterpreted the judgment known as the “Howey Test” that emerged in the 1946 Supreme Court case. Additionally, he argued that the same continues in the Ripple case.
Alderoty believes the SEC’s interpretation was, and still is, wrong at the time. The SEC’s lawsuit against Ripple alleges that the company ran an unregistered offering of securities worth $1.3 billion while selling the XRP cryptocurrency. The SEC argues that XRP should be classified as a security, not a currency. Ripple, on the other hand, states that XRP is a currency and should be regulated as such, not as a security. Alderoty’s comments are part of Ripple’s effort to push back the SEC’s claims.