If you think the four-year SEC-Ripple Labs dispute is ended, think again. Ripple executives vented on X (Twitter) when the SEC rejected the court's XRP ruling.
Stuart Alderoty, Ripple's Chief Legal Officer, disputes the agency's notion that XRP is a security notwithstanding a court order. Ripple CEO Brad Garlinghouse calls the SEC “a renegade agency.”
Ripple has long had SEC issues. Ripple started in 2012 and quickly gained industry interest. Ripple Labs relaunched in 2013 and collaborated with Fidor Bank in Germany. Decentralization and a unique consensus mechanism qualify Ripple as a cross-border payments leader.
However, its success came with a price: the US SEC investigated the firm, which continues today.
Ripple Labs executives' Twitter/X tweets have increased after the Bitnomial judge's ruling. Popular crypto derivatives exchange Bitnomial sued the SEC in Illinois. The business disputed the SEC's authority over its planned XRP Futures contracts. According to Bitnomial, XRP is neither a security and its anonymous secondary market transaction is not an investment contract sale.
US District Judge Analisa Torres sided with Bitnomial, ruling that XRP is not a security. It benefits Ripple Labs and its holders. Ripple's token remains a security, according to the SEC.
After losing in court, Ripple's legal team derided the SEC's attitude, yet it still demands compliance. The corporation says the action undermines the agency's credibility. Alderoty said the agency's position is illegal and undermines its credibility.
Garlinghouse's Twitter/X message shows Ripple Labs' dissatisfaction. He thinks the CIA is at a “new low.” He says defying a court judgment shows the agency feels it's above the law.
Some non-industry advocates back Ripple Labs. Legal experts John Deaton and Bill Morgan questioned the SEC's Ripple Labs stance and objectives. Deaton said the agency's misbehavior case with Digital Licensing raised issues about its methodology and policies.
