Ripple Legal Chief Cites Supreme Court Case as Support for XRP Defense
Ripple Chief Legal Officer Stuart Alderoty believes a recent U.S. Supreme Court decision reinforces the company’s legal position in its long-running dispute with the SEC.
In a tweet on May 19, Alderoty highlighted that the Supreme Court refused to apply factors from an outdated case to modern circumstances. Instead, it emphasized interpreting legal frameworks within current conditions and the underlying statute.
Ripple’s Investment Contract Argument
Alderoty explained that this perspective aligns with Ripple’s interpretation of the Howey Test — the legal benchmark for determining what constitutes a security in the U.S.
According to Ripple, an “investment contract” under Howey requires an actual contractual relationship that creates post-sale obligations on the seller and rights for the buyer. This reasoning suggests that XRP, a decentralized digital asset, should not automatically fall under securities classification.
Alderoty said the principle “carries the soil of common law,” meaning it must evolve to address innovations like cryptocurrencies and blockchain technology.
Court Extends Filing Deadline for Ripple and SEC
In another development, Judge Analisa Torres granted a one-week extension for both Ripple and the SEC to file documents related to former SEC Director William Hinman’s speech. These materials have become central to Ripple’s defense, as they may reveal the agency’s internal views on Ethereum’s non-security status.
Both parties jointly requested the delay to finalize redactions before the new June 13 deadline. The extension sparked speculation of a potential settlement, though prominent crypto attorney John Deaton dismissed that theory.
Settlement Still Unlikely, Experts Say
Deaton noted that if a settlement were imminent, the SEC would not have waited for a judicial order compelling it to release the Hinman documents. Instead, he believes the agency is simply taking time to carefully redact sensitive information while complying with the court’s ruling.
He added that it’s “too late for the SEC to walk back” from its position that XRP is a security, making a quick resolution improbable.
XRP Shows Weekly Gains
Despite ongoing uncertainty, XRP’s market performance turned positive this week. The token rose over 9% in the past seven days, trading at $0.4662 at the time of writing.
The combination of recent court victories and growing optimism within the XRP community continues to bolster investor sentiment as the high-stakes case nears a potential turning point.
