In a recently released YouTube video, Ripple’s chief legal officer, Stuart Alderoty, took the stage to champion XRP’s unique standing in the messy world of U.S. cryptocurrency regulations. While celebrating Ripple’s pivotal victory, he highlighted the urgent need for a comprehensive regulatory framework in the United States.
Alderoty began by pointing out that Singapore, the United Kingdom, the European Union, Dubai, Brazil, Australia, Japan, and others, have “rational regulatory frameworks” that allow proper development of Blockchain innovation as long as it satisfies their regulatory laws.
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He points out that these countries aren’t looking to push out these innovative ideas like the U.S. He states that the U.S. has lost its way because politics and power are elevated over policy.
Alderoty believes certain agencies are fighting over who gets to regulate the technology instead of getting the right policy outcome. He points out that the issue of labeling a digital payment token has left the hands of the regulators and is being decided in the courts. Alderoty states, “Ripple has been on the forefront of that fight with the Securities and Exchange Commission here in the U.S.”
Ripple and the SEC have been fighting the battle over XRP’s status since December 2020. However, Alderoty drew attention to Ripple’s victory over the SEC in July, when XRP was declared a non-security asset. In a landmark decision, Judge Analisa Torres ruled that institutional sales of XRP did not qualify as investment contracts and cemented XRP’s non-security status.
Alderoty emphasized this, pointing to a sticker behind him in his office that read, “XRP is not a security.” According to Alderoty, this outcome “Gives XRP clarity in the U.S., and XRP as a digital token is now uniquely classified as a non-security in the U.S.”
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The Future of Crypto Regulations
Alderoty pointed out that although Ripple won a huge victory for XRP, the issue of classification should not be settled on a token-by-token basis in the courts.
In his words, “Even though we won in the courts, we don’t think that these issues should be fought token by token, case by case, judge by judge.” He emphasized that the U.S. needs a “rational regulatory framework.”
Alderoty points out that although some policymakers are pushing for rational regulatory policy proposals, he feels the chances of Congress adopting any proposals are slim.
Meanwhile, Ripple CLO has expressed his belief about how far the SEC can go in this legal battle. Ripple and the rest of the crypto industry might have a long regulatory journey ahead of them.
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