Brad Garlinghouse, Ripple CEO, accused the US Securities and Exchange Commission (SEC) of disregarding the rule of law following their ongoing legal battles. He criticized SEC Chair Gensler for “creating havoc” and stifling US innovation.
Ripple Labs has filed a cross-appeal in its ongoing legal fight with the SEC. It ensures all its defenses are preserved as the case moves through the courts.
This comes after the commission’s appeal filed earlier this month. Ripple’s Chief Legal Officer suggests that the appeal aims to argue that an investment contract requires essential rights and obligations.
Garlinghouse challenges SEC
Ripple CEO slammed the SEC chair, stating that if Gensler and the commission cared about the rule of law, they would have accepted their loss and moved on.
Garlinghouse argued that the SEC is not interested in faithfully applying the law or in providing clarity to industry players in the US. He claims that the agency is creating havoc on the innovation and technology in the country.
In addition, Garlinghouse declared that Ripple’s cross-appeal will “seal the SEC’s fate,” vowing to end the agency’s regulation by enforcement strategy. He highlighted that Ripple was the industry leader in the first go-round in the court and holds the strength to lead the way in this round as well.
In July, District Judge Torres ruled that Ripple’s programmatic XRP sales didn’t violate securities laws. The decision left XRP unclassified as a security, which is seen as a huge win for the crypto community. However, both sides will now lay out their high level arguments in the coming weeks.
XRP price recorded an uptrend after the Ripple’s cross-filing. XRP price jumped by around 2% while other major altcoins are trying to overcome the selling pressure. XRP is trading at an average price of $0.53 at press time. Its 24 hour trading volume spiked by over 52% to stand at $1.2 billion.
Alderoty claims SEC lost on all key points
Stuart Alderoty, Chief Legal Officer, stated in an X post that the SEC lost on all key points, and this is the reason why they filed an appeal in the court. He emphasized that this cross-appeal will address key arguments. This includes the crucial point that “investment contracts” necessitate essential rights and obligations.
He mentioned that the commission has already said that they aren’t appealing the ruling that XRP itself isn’t a security. This major acknowledgment is expected to shape future regulations in the crypto space.
The SEC lost on all key points—that’s why they appealed. Today, Ripple filed a cross-appeal to ensure nothing’s left on the table, including the argument that there can’t be an “investment contract” without there being essential rights and obligations found in a contract.
— Stuart Alderoty (@s_alderoty) October 10, 2024
Alderoty recalled the SEC’s previous failed attempts to classify Ripple’s XRP sales on exchanges and distributions as securities. He also added that they’re likely to revisit these issues but are expected to lose again.
