Ripple's Ongoing Legal Battle with the SEC
Ripple's legal dispute with the U.S. Securities and Exchange Commission (SEC) has escalated as CEO Brad Garlinghouse openly criticized the agency's regulatory tactics. He accused the SEC, led by Gary Gensler, of favoring a regulation-by-enforcement approach instead of establishing clear guidelines for the industry.
In a strategic move, Ripple has filed a cross-appeal to challenge unresolved legal issues, specifically regarding the classification of XRP as a security. Stuart Alderoty, Ripple's General Counsel, stated that this cross-appeal aims to clarify significant legal questions. Ripple asserts that XRP should not be considered an “investment contract,” a point they believe the SEC has not adequately addressed. Alderoty also highlighted that the SEC is unable to sue Ripple over XRP sales on exchanges as securities, marking a notable setback for the agency.
Ripple's strategy seeks to establish a clear legal framework, ensuring that XRP is not classified as a security. The outcome of this legal battle could have far-reaching implications for Ripple and the broader cryptocurrency landscape.
Recent Developments:
- Ripple Labs faces a $2 billion demand from the SEC regarding XRP sales.
- The company has requested the court to deny the SEC's motion for an interlocutory appeal.
- In related news, Bitnomial has taken the SEC to court over XRP futures regulation.
- Charles Hoskinson has reacted to Tron founder Justin Sun becoming the Prime Minister of Liberland.
