Stuart Alderoty, chief legal officer at blockchain payments firm Ripple Labs, expressed optimism that the potential next head of the US Securities and Exchange Commission (SEC), once confirmed by the Senate, might dismiss civil suits against crypto firms. In a Jan. 28 X Spaces discussion for XRP Community Day 2025, Alderoty stated he was hopeful that the SEC, under potential chair Paul Atkins, would drop crypto enforcement cases that did not involve fraud, particularly those centered around registration issues. Ripple remains involved in an ongoing SEC lawsuit, where both parties filed appeals after a judge issued a liability ruling in 2024.
“That will take some time to sort out — the SEC is still a big bureaucracy,” Alderoty said, referring to the potential for Atkins to drop lawsuits. He continued, “Litigation and regulating through enforcement is not the way forward for this country. I believe the new SEC understands that, and I’m cautiously optimistic that, sometime in 2025, the case will be voluntarily dismissed.” The SEC’s lawsuit against Ripple, filed in December 2020, accused the company of using XRP tokens as an unregistered security to raise funds. In August 2024, a federal judge ruled that Ripple was liable for more than $125 million, leading the SEC to appeal the decision, with Ripple filing its own cross-appeal.
Ripple Optimistic for Crypto Under Trump
Alderoty believes that Ripple sees “nothing but upside” from the Trump administration’s approach to crypto, pointing to the presidential executive order that created a working group to study digital asset regulation, the SEC’s formation of a crypto task force, and other key initiatives. Ripple CEO Brad Garlinghouse had previously mentioned that 75% of the company’s job openings would be based in the US after the 2024 election. However, it remains unclear if Atkins will garner the votes needed for Senate confirmation following his nomination by President Trump. Alderoty suggested that a pro-crypto Congress, influenced by Ripple’s political action committee Fairshake, could play a key role in advancing a crypto market structure bill.
“I believe we have a pro-crypto Congress backed by a pro-crypto president, so we could see [legislation] moving forward definitely before the end of 2025,” Alderoty stated. Both Alderoty and Garlinghouse maintain close ties to Trump. The pair dined with the then-president-elect at his Mar-a-Lago residence in January and attended official inauguration events in Washington, DC. Alderoty personally contributed more than $300,000 to political action committees supporting Trump during the 2024 election, and Ripple also donated $5 million worth of XRP to Trump’s presidential inaugural fund.
Conclusion:
Ripple’s legal battle with the SEC remains ongoing, but the company is optimistic about the potential changes under the leadership of Paul Atkins as SEC chair. With a pro-crypto stance, Ripple is hopeful for a shift in the regulatory landscape that may lead to the withdrawal of enforcement actions against the company. Additionally, Ripple sees significant potential for crypto legislation under the Trump administration, fostering a more favorable environment for the industry in 2025.
FAQs:
What is the current status of Ripple’s legal battle with the SEC?
Ripple is involved in an ongoing lawsuit with the SEC, which claims the company used XRP tokens as unregistered securities. Both Ripple and the SEC have filed appeals following a judge’s ruling in 2024.
What does Stuart Alderoty hope for from the new SEC chair, Paul Atkins?
Alderoty is hopeful that under Paul Atkins’ leadership, the SEC will dismiss crypto enforcement cases that primarily concern registration issues, especially those not involving fraud, and he remains optimistic that the case against Ripple will be voluntarily withdrawn by 2025.
How is Ripple involved with Donald Trump’s administration?
Ripple executives, including Stuart Alderoty and CEO Brad Garlinghouse, have expressed support for Trump’s pro-crypto stance. Ripple has made political contributions to Trump’s campaign and inauguration, and the executives have had close personal interactions with Trump.
What is Ripple’s outlook on the 2024 election and the potential for crypto legislation?
Ripple is optimistic that with a pro-crypto president and Congress, crypto market structure legislation will be passed, likely before the end of 2025.
I am Toby Rothschild, Co-Founder of Spearmint and author at Coinography, and a strategist focused on advancing Web3 innovation, digital ecosystems, and the future of decentralized technology. I combine product thinking, creative leadership, and deep interest in emerging trends to help shape how individuals and organizations interact with the next generation of digital systems.
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