On July 13, 2023, Judge Analisa Torres ruled that the secondary sale of XRP doesn’t qualify as a security.
Ripple CEO Brad Garlinghouse and CLO Alderoty celebrate the victory’s one-year anniversary.
Garlinghouse reiterated his stance against the SEC’s efforts to smother the industry.
Ripple’s top management is marking the one-year anniversary of a landmark court ruling that declared XRP not a security, a decision they view as a major victory in their ongoing battle with the U.S. SEC. The ruling, issued on July 13, 2023, has become a rallying point for the crypto industry as it grapples with regulatory uncertainty.
Ripple executives Brad Garlinghouse and Stuart Alderoty marked the anniversary with social media posts that not only celebrated the legal win but also took direct aim at what they see as the SEC’s heavy-handed approach to crypto regulation. Their remarks highlight the ongoing tension between the crypto industry and regulators, a conflict that has only intensified in the year since the XRP ruling.
In an early-morning tweet on July 13, 2024, Garlinghouse called the anniversary a “core memory,” underscoring the importance of the ruling for both Ripple and the broader crypto world. He sharply criticized the SEC’s lawsuit, calling it a “harassment” campaign and an “unlawful war” on the industry.
July 13, 2023 – that day was a very good day – for Ripple and the entire industry. And for me personally, a core memory!We had the conviction to fight the bully that has harassed and executed an unlawful war on our industry. As I said when it started, I knew we were on the… https://t.co/m4W1eRsIf7
— Brad Garlinghouse (@bgarlinghouse) July 12, 2024
The SEC’s 2020 lawsuit alleged that Ripple had conducted an unregistered securities offering. However, Judge Torres’ decision sided with Ripple on several key points, determining that XRP sales on exchanges, distributions to developers and charities, and sales by executives did not constitute securities transactions. This ruling has been widely seen as a rebuke of the SEC’s approach to regulating cryptocurrencies.
Garlinghouse reiterated his belief that the SEC’s actions are misguided and detrimental to innovation. He pointed to the agency’s “failed lawsuits, false rhetoric, slander, and intimidation” as evidence of its overreach.
“We had the conviction to fight the bully that has harassed and executed an unlawful war on our industry. As I said when it started, I knew we were on the right side of the law and that we would be on the right side of history.”
Ripple’s Chief Legal Officer, Stuart Alderoty, echoed Garlinghouse’s sentiments on Twitter. He described the ruling as a “watershed moment” that has had a significant impact on other crypto-related legal battles, including the recent decision regarding BNB token in the Binance lawsuit.
Alderoty emphasized that while the Ripple lawsuit is not yet fully resolved, the court’s determination that XRP itself is not a security is a crucial legal precedent that will stand. He encouraged the XRP community to stay the course, asserting that Ripple and the broader industry will emerge from these regulatory challenges stronger than before.
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