Ripple CLO: SEC Retreat Signals Positive Shift in US Crypto Regulation

Ripple's Chief Legal Officer (CLO), Stuart Alderoty, has explained his reasons why the U.S. Securities and Exchange Commission (SEC) dropped its legal appeal against the company in March 2025.

Alderoty shared his insights through Ripple's Crypto in One Minute series on X.

In the video, Alderoty outlined the implications of the legal victory. For several years, Ripple was in a legal battle with the SEC over whether the cryptocurrency associated with it (XRP) should be classified as a security.

The case was closely watched by most crypto market players, as they considered its outcome as the basis for how the U.S. would regulate the digital asset industry. Initially, the SEC claimed that Ripple sold XRP as an unregistered security.

However, a series of legal wins turned the case in Ripple's favor. The case ended earlier this year when the SEC decided to abandon its appeal.

Alderoty added that the regulator's decision to step back from its appeal is a sign of positive change in how the U.S. approaches crypto regulation. The Ripple CLO further said the legal case has given clarity on much of what the market needed to know about XRP.

With that clarity in place, it would have been counterproductive for the SEC to continue with the appeal. Also, the decision suggests that regulators are starting to realize the need for smarter and more customized regulations for digital assets, which protect consumers without stifling innovation in the industry.

Four key principles for balanced crypto egulation

In the brief video message, Alderoty also emphasized four key principles that he believes could guide future policies regarding crypto regulation. According to him, these principles are: providing support for innovation, safeguarding markets, stopping bad actors, and protecting consumers.

These principles suggest a more balanced regulatory future that encourages growth within the crypto industry and does not rely on outdated financial models. Meanwhile, many in the crypto community consider the SEC's decision a major win for Ripple and a sign of optimism for the broader blockchain ecosystem.

Experts believe the SEC's decision not to pursue further legal action could enable U.S. policymakers to support cryptocurrencies and blockchain technology with clear and thoughtful rules.

Lately, there have been rumors about Ripples achievements on the X social media platform. According to a report on U.Today earlier today, there is no truth to the rumors that Ripple intends to offer $20 billion for the purchase of USDC stablecoin issuer Circle.