Ripple CLO Hails SEC’s Dropped Appeal as Turning Point for Crypto Regulation

Ripple's Chief Legal Officer, Stuart Alderoty, has revealed why the U.S. Securities and Exchange Commission (SEC) abandoned its legal appeal against the company in March 2025. Speaking in Ripple’s “Crypto in One Minute” series on X, Alderoty highlighted the broader implications of this legal milestone, calling it a major step toward regulatory clarity in the digital asset space.

The long-running case centered on the SEC’s claim that Ripple sold XRP as an unregistered security. However, after a string of courtroom victories for Ripple, the SEC ultimately dropped its appeal—signaling, according to Alderoty, a shift toward more sensible U.S. crypto regulation.

Alderoty emphasized that the SEC’s withdrawal marks a recognition that continued litigation would be counterproductive, especially as courts had already provided clarity regarding XRP’s classification. He framed the outcome as a win not only for Ripple but also for the entire crypto industry, which has long sought clear guidelines on how digital assets should be treated under U.S. law.

He further outlined four principles to guide future regulation: supporting innovation, safeguarding markets, stopping malicious actors, and protecting consumers. These, he said, should form the foundation of a forward-looking crypto policy that moves beyond outdated financial frameworks.

The SEC’s retreat is seen by many in the crypto community as a landmark victory that could influence future U.S. crypto policy. Experts believe this decision opens the door for more constructive regulation, encouraging growth and innovation while ensuring consumer protection. Meanwhile, Ripple has denied recent rumors about a $20 billion offer to acquire stablecoin issuer Circle, calling such claims unfounded.

This outcome strengthens XRP’s legal standing and may boost investor confidence in the broader blockchain ecosystem.