Background: The lawsuit between Ripple and the U.S. Securities and Exchange Commission (SEC) has lasted for four years. Recently, the SEC decided to drop its appeal in the Ripple case, drawing widespread attention from the cryptocurrency industry.

Main Event: Ripple's Chief Legal Officer Stuart Alderoty revealed in an interview that one reason for the SEC's withdrawal of the appeal was the vague grounds for its prosecution. The SEC not only abandoned its appeal against Ripple but also terminated investigations into multiple crypto companies, including Coinbase, ConsenSys, and Kraken.

Potential Impact: Alderoty stated that the SEC acknowledged its inability to sue cryptocurrency companies without clear laws, rules, and regulations. He expressed optimism about the future, believing that the SEC will collaborate with Congress to establish crypto regulations that protect consumers and market integrity, clean up industry chaos, and promote innovation.

In a recent interview, Ripple’s Chief Legal Officer,Stuart Alderoty, made an interesting revelation about the SEC. He shared what he believes might have propelled the regulator to backpedal on its stance in the Ripple vs. SEC lawsuit.The SEC’s decision to drop its appeal in the Ripple case has had an undeniable impact on the cryptocurrency industry. However, the development has since sparked a long debate about the factors fueling the SEC’s decision to end the four-year legal battle.In a new Ripple segment dubbed“Crypto in one minute,”the firm’s CLO addressed the SEC’s move to halt its appeal case against Ripple, explaining that the regulator’s reasoning for filing the lawsuit was largely vague.“I think the real question is, why did they [the SEC] bring the case? The SEC has not only dropped its appeal against Ripple, they’ve now dropped every case against every crypto company in the United States.”He remarked.Can the SEC become Crypto-friendly? Ripple’s CLO shares his viewsAs Stuart Alderoty stated, the SEC has dropped investigations and many high-profile cases against leading cryptocurrency firms, including Coinbase, ConsenSys, Kraken, Yuga Labs, Immutable, and many others.“The SEC has now admitted what we’ve always been saying; that you can’t bring endorsement actions for violating the law, without first explaining what the law is. We never had clear laws, rules, and regulations regarding crypto in this country. So we’re gonna clean up this mess, we’re gonna get out of the courtroom, we’re gonna get back to running business.” Alderoty added.The CLO expresses optimism in the long term, observing that the regulator appears committed to working with Congress to implement crypto regulations that protect consumers and the integrity of the market, eliminate bad actors, and foster innovation in the industry.

Ripple's Chief Legal Officer Analyzes the Key Reasons Behind the SEC's Appeal Withdrawal and the Outlook for Crypto Regulation