Ripple CEO Brad Garlinghouse Weighs In on Bitnomial Legal Woes, Calls SEC ‘Renegade Agency’

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As a seasoned crypto investor with a keen eye for regulatory developments, I find myself both intrigued and concerned by the latest turn of events between Ripple, Bitnomial, and the SEC. Brad Garlinghouse’s strong words against the “renegade agency” underscore the growing frustration within the crypto community towards the SEC’s seemingly relentless anti-crypto stance.

In simpler terms, Brad Garlinghouse, head of U.S. fintech company Ripple (valued at over $10 billion), has expressed his backing for Bitnomial, a derivatives exchange based in Chicago, as they take legal action against the SEC due to another perceived attack on XRP. Bitnomile, one of the suppliers of XRP futures contracts, is hoping to receive a ruling from an Illinois federal district court to prevent excessive regulatory pressure.

Ripple’s Garlinghouse says “renegade agency” SEC hits new low again

In a firm stance against cryptocurrencies, as expressed by Brad Garlinghouse, CEO of Ripple and speaking to his 825,000 followers on XRP, he criticizes the U.S. Securities and Exchange Commission for operating beyond the confines of the law and disregarding a clear court decision that established XRP as a non-security asset.

An unprecedented level of audacity has been reached by an agency once believed to have hit rock bottom, as the SEC now claims they are exempt from legal constraints, disregarding a court decision stating that XRP is not classified as a security. Ripple’s team will be vigilantly monitoring this situation and contemplating appropriate actions to ensure the SEC faces consequences for their actions.— Brad Garlinghouse (@bgarlinghouse) October 11, 2024

As an analyst, I’ve recently chosen to support Bitnomial, a digital assets futures exchange based in Chicago. In an anticipatory action, they’ve opted to challenge the Securities and Exchange Commission (SEC) due to concerns that the regulatory body may be exceeding their statutory authority.

Additionally, Garlinghouse emphasized that his company Ripple’s team will vigilantly monitor the ongoing legal case between Bitnomial and the Securities and Exchange Commission (SEC) and consider ways to challenge regulatory actions if necessary.

Previously reported by U.Today, Ripple has submitted an appeal against a U.S. court’s final ruling which mandated the company to pay a penalty of $125 million.

The Securities and Exchange Commission (SEC) has chosen to challenge the August 2024 decision as well, and they are broadening their efforts to demonstrate that XRP functioned as a security all along, thus requiring regulation in line with its nature.

No, XRP futures cannot be regulated by SEC: Bitnomial goes after regulator

In a fresh legal action, Bitnomial declared that it has already self-certified its XRP-based derivative product with the U.S. Commodity Futures Trading Commission (CFTC). This self-certification could potentially lead to a dispute over the classification of the XRP contract, as suggested in a letter from the Securities and Exchange Commission (SEC), which might trigger an enforcement conflict.

Through a remark on Law.com, attorney Matthew F. Kluchenek from Katten Muchin Rosenman asserts that this legal action carries significant weight for these kinds of financial products within the United States, as well as for companies providing them to investors.

Discussion revolves around who holds authority over trades involving future contracts. While it’s clear that a regulatory body is present, the question arises as to whether it should be solely the Commodity Futures Trading Commission (CFTC), or if the Securities and Exchange Commission (SEC) should also share jurisdiction. I am not aware of any court cases addressing this matter, particularly focusing on the intersection of security futures and seeking a decision from that angle.

Essentially, Bitnomial is pursuing a statement from the District Court in the Northern District of Illinois, asserting that XRP contracts do not fall under the category of security futures.

Furthermore, Bitnomial aims to prevent the Securities and Exchange Commission (SEC) from claiming authority over XRP future contracts and refraining from any further actions related to their sale.

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2024-10-12 14:11