Ripple CEO Brad Garlinghouse has criticized the U.S. Securities and Exchange Commission (SEC) for its continued stance on XRP’s legal status. After the SEC recently filed an appeal in the ongoing lawsuit over XRP, Garlinghouse accused the regulatory body of overstepping its authority. He pointed out that the SEC was disregarding Judge Analisa Torres’s ruling, which declared that XRP is not a security under the SEC’s definition.
In 2023, Ripple secured a significant legal victory when the court reduced its fine from $2 billion to $125 million. Judge Torres ruled that XRP does not meet the criteria of a security, a decision that Ripple saw as a major step forward. Despite this ruling, the SEC chose to appeal, much to the frustration of Ripple’s legal team.
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Bitnomial Joins the Battle Against SEC
The SEC’s treatment of XRP has also drawn criticism from cryptocurrency exchange Bitnomial, which has approved XRP futures contracts. The SEC warned Bitnomial that these contracts would fall under the “security future” category and would need heavy hedging. In response, Bitnomial argued that XRP should not be classified as a security and insisted that its proposed futures contracts should not face such regulatory restrictions.
Growing Tensions Between Ripple and the SEC
Ripple’s legal team continues to monitor the SEC’s actions closely, with Garlinghouse vowing that Ripple will not back down. Stuart Alderoty, Ripple’s chief legal officer, expressed disappointment over the SEC’s appeal but said it wasn’t surprising. Garlinghouse further emphasized Ripple’s commitment to holding the SEC accountable for what he called the agency’s overreach.
Related article: Ripple Strikes Back: Cross-Appeal Targets SEC Verdict
The ongoing legal battle highlights broader issues around how cryptocurrencies should be regulated in the U.S. The SEC’s aggressive stance has affected exchanges like Bitnomial, which are seeking to offer new financial products in the growing cryptocurrency market.
Ripple remains firm in its defense of XRP as a non-security, marking a critical moment in the evolution of U.S. cryptocurrency regulations.