Billionaire Elon Musk and Ripple CEO Brad Garlinghouse have joined forces in opposing the U.S. Securities and Exchange Commission (SEC), intensifying scrutiny on Ripple’s ongoing legal battle with the agency and its broader implications for the crypto industry.
This development comes as the SEC faces a potential major overhaul following Donald Trump’s election victory. Elon Musk, who has had his clashes with the SEC, recently described the agency as a “weaponized institution doing political dirty work.” This statement resonated strongly with Garlinghouse and the broader crypto community, particularly as Ripple fights accusations of selling XRP as an unregulated security.
Notably, Musk’s comments came just after last month’s Fifth Circuit Court ruling, which criticized the SEC for overstepping its mandate in approving Nasdaq’s diversity quota policy. The court ruled that the SEC acted unlawfully by endorsing a policy requiring corporate boards to meet identity-based diversity quotas or explain why they didn’t. The decision emphasizes that the SEC’s role is to ensure a fair marketplace, not to impose politically motivated standards.
While the decision focuses on stock markets, it carries significant implications for the crypto industry. It bolsters Ripple’s argument that the SEC is exceeding its authority through “regulation by enforcement,” a stance shared by industry leaders like Garlinghouse, Coinbase, and Binance, all of whom have found themselves in legal battles or under the SEC’s scrutiny in recent years.
Since 2020, Ripple’s legal battle has drawn attention across the crypto space. Last year’s partial court victory, where XRP was ruled not to be a security when sold to the general public, marked a significant milestone. However, with the case still unresolved, Ripple remains cautious, as its outcome will have far-reaching implications for XRP and the wider crypto market.
Meanwhile, Musk’s alignment with Garlinghouse is critical, particularly as Ripple continues to expand internationally. Despite regulatory challenges in the United States that have limited XRP’s growth over the past seven years, the third-largest cryptocurrency has experienced a significant surge, especially following Trump’s recent election victory. This win has sparked hope for more crypto-friendly regulations, signaling a potential turning point for XRP and the broader cryptocurrency market.
Over the past two months, XRP has seen a remarkable surge, increasing by more than three times its price and peaking at $2.61 earlier this month. Its market capitalization has also risen sharply, jumping from $106 billion to $160 billion in just the past month, underscoring the increasing interest in the asset and signaling continued expansion.
At press time, XRP was trading at $2.41, reflecting a 1.51% increase in the past 24 hours.
