Ripple’s legal dispute with the U.S. Securities and Exchange Commission (SEC) has intensified as CEO Brad Garlinghouse openly criticized the SEC’s regulatory tactics. He argued that the agency, led by Gary Gensler, continues to rely on regulation-by-enforcement strategies rather than providing clear rules. In response, Ripple filed a cross-appeal to challenge unresolved legal issues, particularly concerning XRP’s classification as a security.
Stuart Alderoty, Ripple’s General Counsel, emphasized that the cross-appeal aims to clarify key legal issues. Ripple contends that XRP is not an “investment contract,” which they think the SEC has failed to address. Alderoty also pointed out that the SEC could not sue to have Ripple’s XRP sales on exchanges as securities, which is a significant blow for the agency.
It is a strategy nobody has dared to embark upon since, and its intent is twofold: to ensure that Ripple complies with a clear legal standard so that XRP is not seen as a security. Drawing on the recent events, the implications of the battle could be direct for Ripple and the crypto space in general.
Also Read: SEC Faces Scrutiny Over Missing Form in Ripple Lawsuit Appeal
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Ripple’s Cross-Appeal Could Set Precedent for Crypto Regulation
Ripple’s cross-appeal introduces another flank to the case as it tries to adapt to longstanding questions about what qualifies as an “investment contract.” Over the years, Ripple has averred that XRP is not a security, and Alderoty reiterated this given the current difficulty with the SEC. The bad news for the SEC has been its inability to prove otherwise, especially after earlier attempts to classify XRP sales as securities were thwarted.
This legal battle continues to highlight the tension between the crypto industry and regulators, with Ripple’s case potentially shaping the future of cryptocurrency regulations in the U.S. Moreover, the result of Ripple’s case can determine the future destiny of cryptocurrencies in the United States. The cross-appeal would ensure that nothing is left on the table and that Ripple has all it takes to settle these legal grey areas for good.
With both sides digging in, the broader cryptocurrency community closely watches the case, as its outcome could redefine the regulatory environment for digital assets.
Also Read: U.S. Senate Candidate John E. Deaton Criticizes SEC’s Appeal in Ripple Case
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.