Ripple’s leadership has issued sharp criticisms against the U.S. Securities and Exchange Commission (SEC), focusing on the agency’s legal strategies and its impact on the cryptocurrency industry. Meanwhile, Ripple’s XRP token continues to experience a surge in trading activity.
Ripple CEO Challenges SEC Chairman
Ripple CEO Brad Garlinghouse took aim at SEC Chairman Gary Gensler, accusing him of perpetuating a “regulation by enforcement” approach. Gensler, set to step down on January 20, has been a key figure in the SEC’s crackdown on the cryptocurrency market.
Garlinghouse argued that the SEC’s efforts are disconnected from broader public concerns and could be significantly influenced by the upcoming 2024 elections.
Ripple’s Legal Team Pushes Back
Stuart Alderoty, Ripple’s Chief Legal Officer, also criticized the SEC, highlighting the agency’s refusal to grant Ripple’s request for an extension to file its appeal brief. The brief is due on January 15, and Alderoty called the decision “unnecessary.” Despite this setback, Ripple remains confident in its legal stance, with Alderoty expressing hope for a favorable outcome under new SEC leadership.
XRP Price Surge Amid Legal Battle
Amid the ongoing legal tussle, the price of XRP surged by over 9%, reaching nearly $2.70. The cryptocurrency has maintained strong market momentum despite regulatory challenges.
Background on Ripple vs. SEC Case
The legal battle between Ripple and the SEC began in 2020, with the SEC alleging that Ripple violated securities laws by selling XRP without registering it as a security. Ripple has consistently denied these claims, asserting that XRP is a digital asset comparable to Bitcoin or Ethereum, both of which have not been classified as securities by the SEC.
The dispute took a pivotal turn in August 2024 when a court ordered Ripple to pay $125 million in penalties. The SEC subsequently appealed the ruling, and Ripple’s recent request for an extension to file its appeal brief was denied.
Ripple’s Path Forward
As the case progresses, Ripple continues to advocate for clearer cryptocurrency regulations, criticizing the SEC’s approach for stifling innovation. The company remains optimistic about a resolution that aligns with its longstanding argument that XRP is not a security.
