As a seasoned crypto investor with a decade-long journey in this dynamic industry, I’ve witnessed my fair share of regulatory battles and courtroom drama. The ongoing saga between Ripple Labs and the US Securities and Exchange Commission (SEC) is one that has kept me on the edge of my seat, and it seems like we’re far from seeing a resolution.
If you believe that the four-year dispute between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has been resolved, you may be mistaken. In a string of social media posts on Twitter, Ripple’s leadership expressed their disappointment with the SEC following its disregard for the court’s recent ruling regarding XRP.
As an analyst, I’m sharing my perspective on a recent development: Although a court decision has been made, Ripple’s Chief Legal Officer, Stuart Alderoty, questions the Securities and Exchange Commission’s (SEC) persistent assertion that XRP is a security. In alignment with this viewpoint, Ripple’s CEO, Brad Garlinghouse, has expressed similar sentiments, labeling the SEC as a “renegade agency.
The ongoing issues between Ripple and the SEC date back quite some time. Launched in 2012, Ripple quickly grabbed the attention of the industry. By 2013, the company had rebranded to Ripple Labs and shortly thereafter formed a partnership with Germany’s Fidor Bank. Ripple’s decentralized structure and distinct consensus mechanism have solidified its position as a significant player in cross-border transactions.
Yet, the rising fame this company enjoys is not without repercussions: an investigation by the U.S. Securities and Exchange Commission into their activities persists, creating ripples that have yet to subside.
A new low for a renegade agency many thought couldn’t sink further.
The SEC appears to hold the view that they are exempt from legal constraints, disregarding a court decision classifying XRP as a non-security asset.
Team Ripple will be watching closely and weighing our own options to hold the SEC accountable.
— Brad Garlinghouse (@bgarlinghouse) October 11, 2024
Bitnomial Case Offers A Brief Win For Ripple
Following the court’s decision on the Bitnomial case, executives from Ripple Labs have been active on Twitter/X, posting updates. Bitnomial, a well-known crypto derivatives exchange, initiated a lawsuit against the SEC in an Illinois court. In this lawsuit, the company disputed the SEC’s assertion that its planned XRP Futures contracts fall under their jurisdiction. Bitnomial maintains that XRP is not classified as a security, and the sale of XRP in secondary markets should not be considered as selling investment contracts.
In simpler terms, Judge Analisa Torres decided in favor of Bitnomial, implying that XRP is not classified as a security. This decision benefits both Ripple Labs and its stakeholders. However, the Securities and Exchange Commission (SEC) disagrees, viewing Ripple’s token, XRP, as a security instead.
Ripple Team Calls Out SEC’s Stance
Ripple’s legal team joked about the SEC’s position following their court loss, but still insists on adherence to regulations. The company argues that this action undermines the agency’s ethical standards and reputation. Moreover, Alderoty asserts that the SEC’s standpoint is unconstitutional and undermines its trustworthiness.
In simpler terms, Garlinghouse’s tweet expresses his annoyance towards the regulatory agency. He suggests that the agency seems to think it’s exempt from legal obligations, as they disregard a court’s decision.
Ripple Labs Gets Support From Outside The Industry
Ripple Labs has some backers outside of their field. Notable legal figures such as John Deaton and Bill Morgan have challenged the SEC’s stance and reasons in the Ripple Labs lawsuit. Deaton recently brought up a similar case involving Digital Licensing, where the agency was accused of misconduct, leading to speculation about their methods and policies.
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2024-10-14 07:42