Key Takeaways:
- SEC Appeal Push: Despite an impending leadership change, the SEC is pursuing its appeal in the Ripple case, focusing on XRP’s classification as a security in certain transactions. Ripple executives criticized this as a misuse of resources.
- Political Dynamics: Ripple executives and PAC contributions signal an alignment with pro-crypto policies, with substantial donations supporting political campaigns favoring regulatory change.
- Leadership Shift Impact: The SEC’s approach to crypto enforcement could change under President-elect Trump’s administration, with potential leadership shifts at the agency.
Ripple executives have criticized the U.S. Securities and Exchange Commission (SEC) for refusing to delay its appeal filing in the ongoing legal battle over XRP.
The case originated in 2020, with the SEC accusing Ripple of raising funds through XRP sales as an unregistered security.
On January 20, Gensler’s war on crypto ends at the SEC. We asked the SEC to agree to postpone the filing of their opening brief in their appeal of our victory (current deadline Jan 15) – and they refused. What a waste of time and taxpayer dollars!
— Stuart Alderoty (@s_alderoty) January 14, 2025
Nevertheless, we are confident…
An August 2024 ruling found Ripple partly liable for $125 million but determined that XRP does not inherently qualify as a security in certain transactions.
Ripple’s chief legal officer, Stuart Alderoty, expressed frustration over the SEC’s persistence, labeling it a “waste of taxpayer dollars.”
JUST IN: Ripple CEO Brad Garlinghouse slams SEC Chair Gary Gensler.
— Watcher.Guru (@WatcherGuru) January 14, 2025
"Gensler, very much on brand – completely dismissive of the 2024 election and the American public – fully commits to his failed regulation-by-enforcement agenda to the bitter, bitter end." pic.twitter.com/z4MRjaNCZq
Ripple CEO Brad Garlinghouse suggested that the SEC’s approach to crypto enforcement might shift following the inauguration of President-elect Donald Trump on January 20, as Trump has pledged to replace current SEC Chair Gary Gensler.
Former SEC Commissioner Paul Atkins is expected to be nominated as the new chair.
Ripple has actively supported pro-crypto political initiatives, contributing $45 million to the Fairshake PAC during the 2024 election cycle and announcing an additional $25 million donation for the 2026 midterms.
The future of the SEC’s case against Ripple remains uncertain under new leadership, but Ripple is confident in its legal position and aims for resolution.