Ripple CEO Breaks Silence on Cross-Appeal Move

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As a seasoned financial analyst with over two decades of experience navigating complex regulatory landscapes, I find myself intrigued by the ongoing saga between Ripple and the SEC. While it’s not uncommon for such disputes to arise when new technologies challenge traditional norms, the intensity and prolongation of this battle are remarkable.

Brad Garlinghouse, CEO of Ripple, has recently expressed his thoughts about their choice to file a cross-appeal against the SEC’s decision. In October, the SEC had initially appealed the ruling that required Ripple to pay a $125 million civil penalty for its XRP sales. The original fine sought by the SEC was $2 billion.

Yesterday, Ripple made a response by filing an appeal against Judge Torres’s final verdict, which was issued on August 7, 2024.

In a recent tweet, Brad Garlinghouse, CEO of Ripple, discusses Ripple’s cross-appeal action. Mimicking his statements from October, he suggests that if the Securities and Exchange Commission (SEC) and its chairman, Gary Gensler, genuinely prioritize the rule of law as they claim, they would acknowledge their defeat and proceed. However, according to Garlinghouse, they appear uninterested in fairly applying the law or providing clarity to American industry players.

In my previous statement this month, I expressed that if the SEC, under the leadership of Chairman Gensler, truly valued the rule of law, they would acknowledge their defeat and proceed forward. However, it appears their focus lies elsewhere – neither in upholding the law nor in offering clear guidance to American industry players. As a researcher, I can only observe that, under Chair Gensler’s leadership, the agency seems more concerned with…

— Brad Garlinghouse (@bgarlinghouse) October 10, 2024

Garlinghouse additionally criticized the SEC’s strategy, saying, “Chairman Gensler seems more focused on causing chaos rather than supporting U.S. innovation and technological advancement.

The CEO of Ripple emphasized the possible outcomes of their current approach: “By employing our cross-appeal strategy now, we aim to determine the SEC’s future and ultimately halt their practice of regulating through enforcement.

As an analyst, I’m confidently stating that Ripple, having led the pack in the previous legal battle, is poised to continue its leadership role in this subsequent court case. We eagerly anticipate paving the path ahead.

According to what has been shared, Ripple’s top legal advisor, Stuart Alderoty, implied that the Securities and Exchange Commission (SEC) failed on all crucial matters, which is why they decided to appeal the decision.

Bitnomial sues SEC over XRP futures

According to FOXBusiness reports, the cryptocurrency derivatives platform Bitnomial has filed a lawsuit against the Securities and Exchange Commission (SEC), arguing that the SEC does not have authority over a proposed XRP futures contract they had planned.

In August, Bitnomial, an entity overseen by the Securities and Exchange Commission’s counterpart agency, the Commodity Futures Trading Commission, applied for a contract allowing trading of XRP against the U.S. Dollar. As per Bitnomial’s legal claim, shortly after the application, the SEC reached out to the exchange, asserting that XRP Futures are a type of futures contract involving securities, falling under the shared jurisdiction of both the SEC and CFTC. If Bitnomial were to move forward with the listing, they would allegedly be breaking federal securities laws.

This week, the second legal action has been initiated, and it’s against the SEC. Earlier on Tuesday, Crypto.com took the step of filing a lawsuit, arguing that the regulatory body overstepped its boundaries by asserting that the majority of cryptocurrencies should be classified as securities.

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2024-10-11 18:04