Ripple’s Legal Chief Criticizes SEC Following Latest Court Ruling

Ripple’s legal chief, Stuart Alderoty, has called out the U.S. Securities and Exchange Commission (SEC) for its handling of cryptocurrency regulations, describing the agency’s strategy as an “anti-crypto crusade” that is falling apart.

His remarks come after the Third Circuit Court of Appeals condemned the SEC’s rejection of Coinbase’s petition for rulemaking as “arbitrary” and “capricious.”

The court ordered the SEC to explain its decision to deny Coinbase’s request for clear crypto regulations, highlighting the agency’s inconsistent application of outdated rules against crypto companies. According to Alderoty, the court’s stance reflects what the industry has long argued: the SEC’s selective enforcement strategy is aimed at shutting down the sector rather than addressing fraud.

While Coinbase hailed the ruling as a victory, attorney Fred Rispoli countered that the SEC could still resolve the petition issue, leaving Coinbase’s broader arguments unfulfilled. However, Alderoty pointed to Judge Stephanos Bibas’s concurring opinion, which criticized the use of outdated rules for crypto, as a potential boost for Ripple’s legal appeal.

“Judge Bibas articulated exactly what Ripple has been arguing—century-old regulations don’t fit the modern crypto space,” Alderoty said.

The ruling underscores growing tensions between the crypto industry and regulators, raising questions about the future of enforcement and innovation in the space.