Ripple’s Chief Legal Officer, Stuart Alderoty, has received public recognition for his instrumental role in the company’s high-profile legal battle with the US Securities and Exchange Commission.
Ripple CEO Brad Garlinghouse praised Alderoty for his leadership and legal strategy, which helped the company secure a partial victory in the landmark case.
Garlinghouse Applauds Alderoty’s Leadership During Legal Battle
“I love starting the day by seeing my friend Stuart Alderoty get the public recognition he deserves for the amazing work he’s done here at Ripple and for supporting the crypto industry!” Garlinghouse posted on social media, celebrating the acknowledgment of Alderoty’s contributions.
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The comment follows widespread industry support for the Ripple CLO, whose legal efforts were central to the outcome of the long-running case.
The SEC first sued Ripple in December 2020, alleging that the company’s XRP token was an unregistered security. This was the first time the Commission used the Howey test to determine whether a digital asset should be regulated as a security.
Over three years of legal proceedings, Alderoty helped Ripple defend itself, saying that XRP was made to help with international money transfers, not to be used as an investment.
In July 2023, Judge Analisa Torres decided that XRP, when traded on public exchanges, is not considered a security under US law. The decision was seen by many as a big step back for the SEC’s plan to manage digital assets without making official rules.
Ripple was supported by experts and business entities in legal papers, called amicus briefs, filed to help the company’s side of the case.
Alderoty often said the SEC did not set clear rules, and he believed that firms should follow the rules instead of the SEC just walking around and catching people doing wrong things.
He said that because there was so much confusion, inventors in the US crypto industry were at risk of facing surprising legal challenges, which made it harder for that part of the market to grow.
Despite spending over $150 million on legal fees, Ripple continued to argue that it needed clear rules from regulators to help the whole industry.
SEC Reduces Penalty as Ripple’s Strategy Gains Support
Following the court’s decision, the SEC agreed to retain $50 million of the previously imposed $125 million fine, scaling back its original enforcement action. The development signaled a shift in regulatory momentum and was widely viewed as a win for Ripple’s legal strategy and the broader crypto industry.
Stuart Alderoty’s leadership has since extended beyond Ripple, as he now serves as the president of the National Cryptocurrency Association, an organization dedicated to public education and restoring trust in cryptocurrencies.
The NCA wants to explain the positives of blockchain technology and what digital assets are used for.
Ripple has also been politically active by donating to the Fairshake PAC. During that period, the organization raised more than $250 million to back pro-crypto candidates. As a result, policymakers became more receptive to digital assets in the United States.
Brad Garlinghouse’s praise for Stuart Alderoty emphasizes how important he was to the legal approach and to pushing for regulatory updates. As the lawsuit draws to a close, Alderoty’s recognition highlights a wider shift in the industry, adding more guidance and support for crypto in the US.
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