Ripple CEO Slams SEC for Ignoring Court Ruling on XRP.
NAIROBI (CoinChapter.com)—Ripple CEO Brad Garlinghouse has intensified his criticism of the U.S. Securities and Exchange Commission (SEC) for ignoring a court ruling that declared XRP not a security.
Despite a decision in July 2023 by U.S. District Judge Analisa Torres, the SEC continues to insist on regulating XRP as a security, sparking frustration within Ripple and the broader crypto industry.
Ripple CEO Calls Out SEC Over XRP Dispute
Garlinghouse recently accused the SEC of acting “above the law” for disregarding the court’s judgment. Despite a clear ruling in Ripple’s favor, he expressed disbelief at the regulator’s continued pursuit of legal action against XRP.
The Ripple CEO’s comments followed Bitnomial’s lawsuit, challenging the SEC’s authority over XRP futures.
Ripple CEO Criticizes SEC’s Overreach on XRP. Source: Brad Garlinghouse/X
Ripple’s legal battle against the SEC gained new momentum after the crypto derivatives exchange Bitnomial filed a lawsuit. Bitnomial is challenging the SEC’s authority over XRP futures, arguing that the Commodity Futures Trading Commission (CFTC) should regulate XRP futures, not the SEC.
In its filing, Bitnomial noted that XRP is not classified as a security, and thus, its futures contracts do not fall under the SEC’s jurisdiction.
Ripple’s Legal Chief Calls SEC Actions Unconstitutional
Stuart Alderoty, Ripple’s Chief Legal Officer, has criticized the SEC for operating unconstitutionally. He pointed out that even when companies lose in court, the SEC harasses them into compliance with its regulations, which makes many question the SEC’s position as a regulator.
Alderoty also pointed out that it is dangerous to employ intimidation from the scene, as the SEC does. Otherwise, the agency can undermine its own authority by not accepting the court’s decision, which is not acceptable.
Stuart Alderoty Critiques SEC’s Actions Post-Court Loss. Source: X
Meanwhile, pro-XRP lawyer Bill Morgan and legal expert John Deaton accused the SEC of overreaching and questioned the agency’s motives.
Bitnomial’s lawsuit further complicates the SEC’s legal standing, especially as Ripple filed a cross-appeal in the SEC vs. Ripple case earlier this month. The SEC’s recent loss has raised doubts within the crypto community about its ability to regulate digital assets effectively.
XRP/USD 1-day price chart. Source: CoinMarketCap
Meanwhile, XRP gained only 0.15% on Oct. 12, closing at $0.5385, yet it lagged behind the broader crypto market, which surged 2.11%.
Ripple’s ongoing legal battle with the SEC has exposed deep fractures within the regulatory framework governing cryptocurrencies in the U.S.
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