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Ripple executive optimistic about SEC changes under new chair

Ripple executive optimistic about SEC changes under new chair

GrafaGrafa2025/01/29 02:00
By:Mahathir Bayena

Stuart Alderoty, chief legal officer at Ripple Labs, expressed optimism that the next chair of the U.S. Securities and Exchange Commission (SEC) could withdraw enforcement actions against crypto firms.

In a discussion on January 28 during XRP Community Day 2025, Alderoty highlighted the potential for Paul Atkins, nominated by President Donald Trump, to drop civil suits that primarily focus on registration issues rather than fraud.

Ripple (CRYPTO:XRP) is currently involved in an ongoing lawsuit with the SEC, which alleges that the company conducted an unregistered securities offering through its XRP tokens.

A federal judge ruled in August 2024 that Ripple was liable for over $125 million, leading both parties to appeal the decision.

Alderoty noted that while any changes would take time due to the SEC's bureaucratic nature, he remains "cautiously optimistic" about a voluntary withdrawal of the case during 2025.

“Litigation, regulation by enforcement, is not the path that this country should be pursuing,” he stated, suggesting that a new approach under Atkins could be beneficial.

The SEC’s case against Ripple has been a significant point of contention in the crypto community, and Alderoty believes that a shift in leadership could lead to more favorable conditions for crypto companies.

He pointed out that there is “nothing but upside” for Ripple with Trump’s administration, which has shown a proactive approach toward digital assets through various initiatives.

Despite this optimism, it remains uncertain whether Atkins will secure enough votes for Senate confirmation following his nomination.

Alderoty also mentioned that the current Republican-led Congress might advance legislation to create a clearer regulatory framework for cryptocurrencies.

He emphasised Ripple's close ties with Trump and his administration, noting that significant contributions to political action committees could influence legislative outcomes favorable to crypto.

At the time of reporting, the XRP (XRP) price was $3.08.

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