Ripple's Legal Chief Remains Bullish on XRP Despite Clarity Act Failure

The failure of the Digital Asset Market Clarity Act in the U.S. Senate has not dampened Ripple's chief legal officer, Stuart Alderoty's optimism about XRP.

Alderoty took to social media to remind the crypto community that XRP is on 'settled ground' following a federal court ruling in 2023 that established XRP is not a security.

The ruling came after a lengthy battle with the Securities and Exchange Commission (SEC), which had sued Ripple Labs for offering unregistered securities via the sale of XRP tokens. However, Judge Analisa Torres ruled that XRP itself is not a security, although Ripple's programmatic sales of XRP to institutional clients did violate securities laws.

Alderoty expects the SEC and CFTC to set out clear rules for digital commodities like XRP, as both agencies referred to it in a joint interpretation issued in March. The regulatory clarity is expected from regulators who 'understand these markets', according to Alderoty.