- Ripple’s legal battle with the SEC was crucial in protecting the U.S. crypto industry.
- Legal figures like Stuart Alderoty and John Deaton helped counter early SEC efforts.
- If XRP were to be classified a security, the entire crypto sector would have faced consequences.
Legal experts James Murphy and Paul Grewal have emphasized the critical role Ripple’s legal fight against the SEC played in securing the future of the U.S. crypto industry. In a discussion on X, the two prominent figures highlighted just how critical this battle was in safeguarding the broader crypto ecosystem.
James Murphy, founder of MetaLawman, and Paul Grewal, Chief Legal Officer of Coinbase, both acknowledged that Ripple’s legal team, particularly Chief Legal Officer Stuart Alderoty and legal expert John Deaton, were instrumental in standing against the SEC’s initial regulatory pushes.
Alderoty and Deaton Took the Blow to Delay SEC’s Early Crypto Crackdown
Reflecting on the early days of the SEC’s crackdown, Grewal praised these individuals for bearing the brunt of those efforts. He noted that these figures played a crucial role in holding off the SEC’s attempts to stunt crypto’s growth. He stated:
“People like Stuart Alderoty and John Deaton really helped delay the SEC’s moves to stamp out crypto.”
Related: Ripple to SEC: Enough With Confusion—Time for Clear Crypto Rules, Not Backdoor Regulation
Ripple Took the Fight Head-on
Despite what Grewal described as minimal support from the wider industry at the time, Ripple remained steadfast in its commitment to take the case as far as necessary, even if it meant taking it to the Supreme Court. The company successfully contested the SEC’s claims that XRP be classified as a security.
The outcome of this legal battle is now widely regarded as a turning point for the entire crypto industry. Grewal noted that if the SEC had succeeded in declaring XRP a security, it could have set a precedent to place most cryptocurrencies under heavy regulatory scrutiny.
“If XRP is considered a security, pretty much every crypto asset could be treated the same,” Grewal stated.
Related: Ripple CTO Fires Back at IMF’s Claim, Insists XRP Doesn’t Qualify as a Security
Garlinghouse: U.S. Crypto Ready for Prime Time
In a related development, Brad Garlinghouse is optimistic about the U.S. crypto industry’s future, citing upcoming regulatory changes and easing restrictions.
Related: US Crypto Market Ready for Prime Time, According to Ripple CEO
In a Fox Business interview, he highlighted that new legislation and changes within the SEC and OCC could enable financial institutions to engage more with crypto, unlocking new opportunities. He believes these shifts will help the U.S. regain its leadership in the digital asset space.
Meanwhile, Garlinghouse reflected on Ripple’s expansion, noting that 95% of its customers, including major financial institutions like HSBC, are based outside the U.S.
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