XRP Holders Are Free: Former SEC Lawyer Clarifies Gensler's Lawsuit Targets Ripple, Not Investors
The ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has stirred significant speculation, particularly around the potential appeal of the 2023 court ruling on XRP sales. Many anticipate that the SEC, under Chairman Gary Gensler, will challenge the July 2023 decision, which classified $XRP programmatic sales of XRP as non-securities. Fox Business reporter Eleanor Terrett shared insights from a former SEC attorney, suggesting an appeal is on the horizon.
Frustration is building among some in the crypto community, with one internet user questioning the SEC’s priorities. They expressed concern over the agency’s consumer protection efforts, especially considering the XRP holders already impacted by the legal scuffle. The user criticized the SEC for seemingly targeting the public without substantial evidence of Ripple's wrongdoing, calling it a misuse of taxpayer funds.
However, former SEC lawyer Marc Fagel offered a different perspective, emphasizing that the lawsuit is exclusively directed at Ripple, not individual XRP holders. In a post on X (formerly Twitter), Fagel reassured, “The case is strictly against Ripple. XRP holders are free to use their $XRP however they choose, so why the outrage?”
He further added, “People complain when the SEC is too aggressive, but when a crypto firm collapses, the same people accuse the SEC of not doing enough. It's a no-win situation. Why give up the chance to point fingers when the next inevitable crypto failure happens?”
Ripple’s clash with the SEC stems from allegations that it violated securities laws by selling XRP without proper registration. While Ripple scored a major victory in terms of secondary sales, the company still faced a $125 million fine for other regulatory violations.
Ripple’s lead attorney, Stuart Alderoty, acknowledged the possibility of an appeal but remained confident that it wouldn’t affect the legal status of XRP.