Ripple Slams SEC’s Push to Rush Appeal Before Leadership Shakeup

Last Updated on January 15, 2025

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Ripple logo seen in an iPhone screen on SEC. Source: Koshiro K - stock.adobe.com

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.

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.”

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.

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