Ex SEC Crypto Chief Ladan Stewart Says XRP Lawsuit Likely to Reach Supreme Court

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The latest news on the ongoing dispute between Ripple Labs and the SEC (US Securities and Exchange Commission) regarding the status of their native token XRP as a security has yet to be resolved, making headlines as the XRP lawsuit continues.

Ripple’s legal battle with the SEC has brought some favorable outcomes so far, but there’s a strong possibility that this case could ultimately reach the US Supreme Court. This assumption is bolstered by a recent decision in the Coinbase case, where the SEC emerged as the victor.

Ladan Stewart’s Take on the XRP Lawsuit

At a recent event held at Columbia Business School, Ladan Stewart, who previously led the Securities and Exchange Commission’s (SEC) cryptocurrency litigation unit, provided valuable insights into how the agency approaches issues related to the crypto industry. Although she no longer holds a position with the SEC, her perspective offers a clear window into the SEC’s stance, strategies, and goals regarding crypto regulations.

At the discussion, Stewart pointed out that Judge Failla’s ruling in the Coinbase case might have given the SEC additional confidence in their approach to similar situations. According to a Bitcoinist article, Stewart remarked, “The SEC may feel even more empowered by Judge Failla’s decision in the Coinbase case.”

“The agency is not going to back off from bringing regulatory cases in the crypto space.”

Despite recognizing the importance of clarification in certain situations, she admits. Consequently, she thinks it’s possible that one of the lawsuits against Ripple may ultimately reach the Supreme Court.

Stewart expressed the need for clarification on the subject of what constitutes securities in the crypto industry. In other words, she sought a thorough explanation to answer fundamental questions on this topic definitively. Ideally, the Supreme Court could offer valuable insight into this matter.

Friendly Foe?

Stewart’s closing remarks at the event were the common “we’re all friends” sentiment. Nevertheless, Rebecca Rettig from Polygon and Lewis Cohen from DLx Law offered a different perspective. They emphasized the challenges in complying with SEC regulations, leading them to believe that the SEC predominantly enforces rules rather than establishing practical guidelines.

Crypto supporters frequently note that current securities regulations don’t fit well with the digital asset marketplace. The result is a gray area that leaves industry participants feeling uncertain and perplexed.

Despite the continuous arguments, the outcome of crypto regulations in the USA is yet to be determined.

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2024-04-18 14:12