Ripple CEO Slams US SEC For XRP Security Claim In Bitnomial Case

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As a long-time crypto investor with a keen interest in following the dynamics of this rapidly evolving industry, I find myself deeply concerned about the ongoing tussle between Ripple and the US Securities and Exchange Commission (SEC). The latest development in the Bitnomial lawsuit against the SEC over the classification of XRP futures as ‘security futures’ is a clear indication that the regulatory body is not only ignoring the court’s decision but also overstepping its boundaries.

Brad Garlinghouse, CEO of Ripple, has criticized the U.S. Securities and Exchange Commission (SEC) for disregarding a court ruling that classified XRP as not a security. This comes after the SEC’s stance in the Bitnomial case, where the crypto derivatives exchange is challenging the SEC over the classification of XRP futures in court.

Ripple CEO Slams US SEC For XRP Security Claim

As an analyst, I’d rephrase it like this: In a recent post on social media, Brad Garlinghouse expressed his frustration over the U.S. Securities and Exchange Commission’s actions. He highlighted that a court’s ruling has deemed XRP as not a security, yet the SEC appears to disregard this decision. Garlinghouse suggested that the SEC’s conduct indicates an overreach of its authority, raising questions about the regulator’s accountability in adhering to the law.

Stuart Alderoty, Ripple’s Chief Legal Officer, expressed his concerns about the U.S. Securities and Exchange Commission (SEC) in the Bitnomial case. He questioned the validity of a regulatory body that disregards a court ruling. In Alderoty’s opinion, the SEC’s actions in this case are questionable and potentially unconstitutional, which only serves to undermine the agency’s reputation.

He cited a rather worrying situation where a regulatory body after being defeated in court orders compliance through threats of enforcement in clear disregard of court orders.

Bitnomial Lawsuit Challenges US SEC’s XRP Futures Stance

The case in Bitnomial involves the US SEC’s assertion that XRP futures are ‘security futures,’ which subjects them to more rules than those set by the Commodity Futures Trading Commission (CFTC). 

Bitnomial, a platform for trading crypto derivatives, asserted that XRP futures should be governed by the Commodity Futures Trading Commission (CFTC), since XRP is not classified as a security. In a lawsuit submitted to the U.S. District Court for the Northern District of Illinois, Bitnomial argued that the Securities and Exchange Commission’s (SEC) demand for the company to register as a national securities exchange represents an excessive regulatory burden.

In accordance with the stance of Ripple’s CEO, the exchange also pointed out that the Securities and Exchange Commission’s (SEC) viewpoint contradicts the court’s ruling in a case where the court declared that XRP was not classified as a security in itself. Bitnomial’s challenge represents the most recent escalation in an ongoing dispute between the agency and the crypto sector regarding the agency’s methods of regulating digital assets.

Concerns Over Regulatory Overreach

The most recent advancement in the U.S. Securities and Exchange Commission’s persistent endeavors to govern cryptocurrencies is referred to as the Bitnomial case. Although Ripple lost its legal dispute with the SEC, the agency’s persistence that XRP should be classified as a security has attracted significant backlash from the crypto community.

According to the CEO of Ripple, along with attorney Bill Morgan, a proponent of XRP, and other respected legal professionals, they believe that the Securities and Exchange Commission (SEC) has exceeded its jurisdiction and ignored established legal principles.

In this instance, I took up a fight against the Securities and Exchange Commission (SEC), led by Gary Gensler, advocating for approximately 75,000 XRP token holders, among whom are 627 residing in Massachusetts. This endeavor was entirely uncompensated, with personal funds amounting to $75,000 invested in the legal proceedings. Time and time again, I found myself surprised by the SEC’s attempts to lower its standards; however, the lawyers within the SEC managed to prove me incorrect each time.
— John E Deaton (@JohnEDeaton1) October 11, 2024

In line with Ripple’s CEO, John Deaton – who advocates for XRP holders in the ongoing Ripple case – has also voiced criticism towards the U.S. Securities and Exchange Commission’s behavior. He emphasized that the SEC’s actions have been labeled as “arbitrary and capricious,” which is a tough legal standard to uphold. Deaton also referred to a recent instance involving crypto firm Digital Licensing (Debt Box), where the SEC was penalized for misbehavior, raising questions about the agency’s regulatory procedures.

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2024-10-12 03:27