Ripple CEO Brad Garlinghouse took to social media to express his disapproval of SEC Chair Gary Gensler following the SEC’s opening brief in its appeal against Ripple. The agency seeks to overturn a district court ruling favoring Ripple in its legal battle concerning XRP’s status under securities law.
The SEC noted that the district court was wrong to find that XRP sales could not qualify under the Howey Test’s expectation of profits component. In addition, the agency did not accept the court’s conclusion that XRP sales involving non-cash consideration did not meet the investment-of-money requirement under the Howey test.
The agency called on the appellate court to set aside the district court’s final judgment, which had been a major win for Ripple in the ongoing litigation. Garlinghouse, unimpressed with the SEC’s approach, likened it to “insanity,” referencing the regulator’s persistence in pursuing similar arguments despite prior outcomes. His remarks underscore the growing frustration among Ripple’s leadership over the SEC’s handling of the case.
Also Read: Ripple Lawsuit Update: SEC Yet to Submit Opening Brief as Deadline Looms
Legal Experts and Ripple’s Team Dismiss the Filing’s Impact
Attorney Jeremy Hogan criticized the SEC’s brief, stating that much of it reiterated the district court’s findings rather than presenting new arguments. Hogan described the filing as “lackluster,” suggesting that its drafter appeared uncommitted to the content.
Ripple’s Chief Legal Officer, Stuart Alderoty, also sought to play down the development by stating that it was just a filing. He dismissed the appeal as “noise” and concluded that the case might not continue under a new president. According to Ripple’s legal advisors, there is no reason to think the appeal’s ruling will go any other way than in the initial ruling.
Meanwhile, XRP has experienced a notable price surge, surpassing the $3 mark for the first time in seven years. This development followed a Reuters report suggesting that the SEC might halt enforcement actions in certain non-fraud cryptocurrency cases. Market observers have linked this potential policy shift to the agency’s evolving stance on digital assets.
Conclusion
The ongoing legal battle between Ripple and the SEC continues to draw attention, with high-profile commentary and market reactions. While the SEC’s appeal challenges the district court’s ruling, Ripple’s leadership and legal team remain confident, dismissing the appeal’s potential impact.
Also Read: Breaking: SEC Rejects Postponement of its Opening Brief in the Ripple Lawsuit
