As the Securities and Exchange Commission (SEC) prepares to appeal a federal judge’s decision involving XRP, the agency is setting itself up for yet another high-profile failure, according to Ripple Labs’ Chief Legal Officer, Stuart Alderoty.

“It will backfire on the SEC,” he told Decrypt in an interview. “I felt good about our case in the Southern District of New York. I feel even better about our case in the Second Circuit.”

When the SEC first hit Ripple and two of its executives with a lawsuit in 2020, the company declared “very publicly and very loudly” that its legal fight was “on behalf of the entire industry,” Alderoty said. The move signaled that the SEC was “going to come for everybody,” he added.

Nearly four years later, the industry-wide implications of Ripple’s legal fight have been heightened as the case moves to the Second Circuit Court of Appeals. The determination could establish precedent within the Southern District of New York, outlining how judges should apply securities laws to token issuers within the region’s financial hub, among other areas.

While Ripple lauded U.S. District Judge Analisa Torres’ ruling last year, which found

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Author: André Beganski