According to Stuart Alderoty’s post, in 2020, the SEC requested Ripple to acknowledge publicly that XRP was a security asset and allowed a brief window for compliance.
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Ripple chief legal officer Stuart Alderoty disclosed the content of the United States Securities and Exchange Commission’s (SEC) settlement proposal before the agency filed a lawsuit against the compant in December 2020.
Looking back on the third anniversary of the lawsuit, Alderoty mentioned the settlement terms proposed by the SEC before initiating the case. He explained that before suing Ripple, the SEC suggested a settlement: publicly declaring XRP
$0.62 as a security and allowing the market a brief period to “come into compliance.”
On Dec. 22, 2020, the SEC accused Ripple’s co-founder, Christian Larsen, and CEO, Bradley Garlinghouse, of conducting an unregistered digital asset security offering to raise over $1.3 billion.
According to Alderoty’s post, in 2020, the SEC requested Ripple to acknowledge publicly that XRP was a security asset and allowed a brief window for crypto compliance. Ripple opposed the SEC’s demand, maintaining that XRP is not a security. Additionally, it argued that the SEC failed to establish a regulatory framework for crypto compliance.
Alderoty clarified that the SEC didn’t provide clear rules for crypto compliance. Despite industry criticism and companies relocating, the U.S. regulatory body, three years post-XRP lawsuit, didn’t establish proper industry compliance. Instead, it pursued an enforcement-first strategy, launching legal actions against major crypto exchanges like Coinbase and Binance.
Alderoty emphasized that, despite various perspectives, the core focus of the case was consistently to demonstrate that XRP, on its own, is not a security.
U.S. crypto businesses have contended that current securities laws aren’t suitable for crypto assets, yet the SEC has made minimal progress in establishing a specific regulatory framework for crypto.
Judge Analisa Torres, in a July 2023 summary judgment, ruled that XRP is not a security in retail transactions.
In October, Cointelegraph reported that the SEC dropped charges against Garlinghouse and Larsen.
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