Ripple CEO Brad Garlinghouse has once again voiced concerns over the U.S. Securities and Exchange Commission’s (SEC) handling of XRP’s legal status. Following the SEC’s recent appeal in the ongoing XRP lawsuit, Garlinghouse criticized the agency for disregarding the court’s ruling. He accused the SEC of acting beyond its legal authority and ignoring Judge Analisa Torres’s decision, which ruled that XRP is not a security.
The appeal by the SEC comes after Ripple secured a major legal breakthrough in 2023. Subsequently, the judge deducted the fine from $2 billion to $125 million and declared that XRP does not qualify as security as defined by the SEC. Nevertheless, the SEC has persisted in going on with this case and has appealed the decision, a move that has drawn the ire of Ripple and its lawyers.
Also Read: Ripple Recognized as Leader in Crypto/Fiat Payments by Tearsheet’s Power of Payments Awards
Bitnomial Challenges the SEC Over XRP Futures Contracts
The SEC’s approach to XRP has also triggered resistance from cryptocurrency company Bitnomial, which got approved for XRP futures contracts. The SEC has cautioned Bitnomial that XRP’s future trading will fall under the security future category and is hedged heavily. Bitnomial, however, maintains that XRP is not a security and that the same regulatory rules must not restrict proposed futures contracts.
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This lengthy legal strife previews a continuous battle about how cryptocurrencies should be governed in the United States. Such actions have had repercussions for exchanges like Bitnomial, which aims to introduce new instruments to the rapidly developing market of cryptocurrencies.
Garlinghouse and Ripple’s legal team have been observing what the SEC is up to, and they are not backing down. Ripple’s chief legal officer, Stuart Alderoty, described the appeal as ‘disappointing, ‘but ‘not surprising. As things stand, Garlinghouse vowed that Ripple would continue to defend what he called SEC’s excesses and make the agency answer for its conduct.
Conclusion
The legal fight over XRP continues, and the SEC’s regulatory approach remains scrutinized. Ripple’s ongoing battle with the SEC underscores the cryptocurrency industry’s challenges as it navigates evolving regulatory landscapes. Ripple has clarified that it will not back down in its defense of XRP’s status as a non-security.
Also Read: Bitnomial Takes SEC to Court Over XRP Futures Regulation
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.