Ripple Chief Legal Officer Stuart Alderoty asserted that XRP has already achieved the regulatory clarity that much of the cryptocurrency industry is still striving for, irrespective of whether Congress ultimately passes the CLARITY Act. This certainty, he explained, stems from two distinct avenues: the resolution of Ripple’s own lawsuit with the Securities and Exchange Commission (SEC) and a joint guidance from the SEC and the Commodity Futures Trading Commission (CFTC) that affirmed XRP and several other digital assets are to be classified as commodities. “We have clarity, lowercase ‘c’, with or without clarity, uppercase ‘C’, the legislation,” Alderoty stated.
A Status Earned Through Adversity
Alderoty candidly acknowledged that this clarity was not easily attained, nor did it initially garner significant support from the broader industry. He recalled that Ripple had publicly declared from the outset its intention to challenge the SEC not only for its own benefit but for the entire crypto sector, a claim that was initially met with skepticism. “They just didn’t believe us,” he said.
“There were many in the industry that probably would just have been happy if Ripple got run out of town,” Alderoty added. He noted that industry sentiment has since evolved, with a growing recognition of Ripple’s pivotal role in shaping the current legal framework within which the industry operates.
What the SEC’s New Guidance Confirms
Alderoty highlighted the SEC’s recently proposed 400-page “Regulation Crypto Assets” guidance, released less than 24 hours prior to the interview, as further validation. He pointed out that the document directly references Ripple’s own comment letters, incorporating several legal positions that the company advocated for during its lawsuit into the SEC’s official proposal.
Why Ripple Isn’t Awaiting Congressional Action
Alderoty argued that regulatory bodies should not remain inactive while Congress deliberates on legislation that may or may not be enacted. He emphasized that the SEC and CFTC operate under a statutory mandate to protect consumers and ensure market integrity, a mandate that does not permit indefinite waiting for legislative action. “Their job is not to wait for Congress to change the laws,” he stated. “Their job is to work within the laws as they currently exist.” He further suggested that should the CLARITY Act eventually pass, the SEC and CFTC would likely adapt their existing rules to align with it, rather than starting anew.
Implications for Ripple’s Future Business
Against this backdrop, Alderoty’s central argument was that while the passage of the CLARITY Act would remain highly significant for the rest of the crypto industry, which continues to navigate an environment lacking clear rules, Ripple and XRP have already surpassed that hurdle. Regardless of the bill’s fate in Washington, XRP’s regulatory standing, hard-won through years of litigation, is no longer contingent on its outcome.
