If you thought the four-year dispute between Ripple Labs and the US Securities and Exchange Commission (SEC) was over, think again. In a series of X posts (on Twitter), Ripple executives shared their frustrations with the SEC after it ignored a recent court ruling on XRP.
Although the latter Court rulingStuart Alderotti, Ripple’s chief legal officer, challenges the agency’s persistent claim that XRP is a security. Ripple CEO Brad Garlinghouse joined the chorus, calling the SEC a “renegade agency.”
Ripple’s problems with the SEC have a long history. ripple It was launched in 2012 and caught the attention of the industry in such a short time. By 2013, the company rebranded as Ripple Labs and soon partnered with German bank Fidor. Ripple’s decentralization and unique consensus mechanism underscores its position as a force in cross-border payments.
However, its growing popularity comes at a cost: the US Securities and Exchange Commission launched an investigation into the company, which continues to unfold (no pun intended) today.
A new low for a maverick agency that many believe cannot sink any lower.
The SEC now believes it can act above the law, ignoring a court ruling that XRP is not a security.
The Ripple team will closely monitor and consider our options for SEC accountability. https://t.co/9yMWsNHRde
– Brad Garlinghouse (@bgarlinghouse) October 11, 2024
The Bitnomial case offers a brief win for Ripple
The latest wave of Twitter/X posts from Ripple Labs executives comes after a judge ruled on… Hypnotic state. Bitnomial, a popular cryptocurrency derivatives exchange, has filed a lawsuit against the Securities and Exchange Commission in an Illinois court. The company disputed the SEC’s claims that the proposed XRP futures contracts were subject to the agency’s jurisdiction. Bitnomial says that XRP is not a security, and its anonymous sale on the secondary market does not constitute the sale of investment contracts.
US District Judge Analisa Torres ruled in favor of Bitnomial, saying that XRP is not a security. For Ripple Labs and its holders, this is a win for their cause. But the SEC believes otherwise, and the agency continues to view the Ripple token as a security.
Image: Bitcoin Policy Institute
Ripple team criticizes SEC’s stance
Ripple’s legal team scoffed at the SEC’s stance after its loss in court, yet it continues to call for compliance. The company adds that this step threatens the integrity and legitimacy of the agency. Alderotti also claims that the agency’s position is unconstitutional and damages its credibility.
Garlinghouse’s Twitter/X post depicts the frustration at Ripple Labs. He says the agency has entered a “new low.” It is believed that the agency believes it is above the law by ignoring the court ruling.
Ripple Labs is getting support from outside the industry
Ripple Labs has few supporters outside the industry. Prominent legal figures such as John Deaton and Bill Morgan have questioned the SEC’s position and motives in the Ripple Labs case. Deaton shared a recent case with Digital Licensing in which the agency was flagged for misconduct, raising questions about its approach and policy.
Featured image from CNBC, chart from TradingView