Ripple Slams SEC’s ‘Renegade’ Stance on XRP

Ripple’s leaders confront the SEC over ignoring a court ruling on XRP, igniting a pivotal debate on regulatory overreach.

Brad Garlinghouse is saying to everyone that Gary Gensler is an evil rat in a suit.
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  • Ripple’s executives have criticized the SEC for defying a court ruling on XRP.
  • The SEC has continued to classify XRP as a security.
  • Ripple has considered legal options to hold the SEC accountable.

Ripple is turning up the heat in its ongoing battle with the U.S. Securities and Exchange Commission (SEC), boldly accusing the regulator of operating above the law. With Rippleโ€™s leadership openly defying the SECโ€™s stance on XRP, this clash could shape the future of cryptocurrency regulation in the United States.

Tensions between the two sides are at an all-time high, as Rippleโ€™s pushback against the SECโ€™s defiance of a critical court ruling has sparked intense debate across the crypto space. The implications stretch far beyond XRP, potentially setting a precedent to influence the regulatory approach to digital assets for years.

Ripple’s Power Play Against the SEC

Ripple CEO Brad Garlinghouse is not holding back. He blasted the SEC for dismissing a July 2023 federal court ruling that stated XRP is not a security. His recent post on X (formerly Twitter) made his frustration clear:

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โ€œA new low for a renegade agency many thought couldnโ€™t sink further. The SEC now believes it can operate above the law, ignoring a Courtโ€™s ruling that XRP isnโ€™t a security. Team Ripple will be watching closely and weighing our own options to hold the SEC accountable.โ€ stated Garlinghouse.

Rippleโ€™s Chief Legal Officer Stuart Alderoty reinforced this hardline stance, warning that the SECโ€™s continued efforts to label XRP a security could have serious consequences. His concerns over governmental overreach have struck a nerve within the crypto community, raising alarms about how far the SEC is willing to go in its enforcement strategy.

Despite District Judge Analisa Torres ruling that XRP doesnโ€™t qualify as a security, the SEC refuses to back down. Ripple is now exploring new legal maneuvers to compel the regulator to comply with the courtโ€™s decision, signaling a new phase in this high-stakes showdown.

Bitnomial Lawsuit Ignites Fresh Controversy

The SECโ€™s relentless campaign took another turn when it warned crypto derivatives exchange Bitnomial that its proposed XRP futures contract would violate federal securities laws. Bitnomial responded swiftly, filing a lawsuit challenging the SECโ€™s authority over XRP futures.

Prominent voices within the crypto legal sphere, including pro-XRP attorneys Bill Morgan and John Deaton, have been vocal about the SECโ€™s heavy-handed tactics. Deaton referenced a recent case involving Digital Licensing, where the regulator was sanctioned for misconduct, painting a picture of an agency that may be overstepping its bounds.

As Ripple continues to challenge the SECโ€™s grip on XRP and the broader crypto market, the outcome of this legal war could reshape the regulatory landscape for digital assets in the U.S., creating ripple effects that will be felt across the entire industry.

On the Flipside

  • The SEC has argued that strict regulation is necessary to protect investors from potential fraud.
  • The ongoing legal dispute has caused uncertainty for both the XRP token and Rippleโ€™s business ventures.
  • A definitive resolution could pave the way for clearer crypto regulations in the future.

Why This Matters

The escalating dispute between Ripple and the SEC is more than a legal battleโ€”it’s a pivotal moment that could determine how digital assets are classified and regulated in the U.S. If Ripple succeeds, it may limit the regulator’s reach over cryptocurrencies, fostering innovation and clarity in the crypto industry. Conversely, if the SEC’s stance prevails, it could lead to stricter regulations.

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Despite the legal battle with the SEC, big investors seem bullish on XRP. This article explores why XRP’s legal battle might not scare off big investors.
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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Kyle Calvert

Kyle Calvert is a reporter for DailyCoin covering all Ripple (XRP) developments and market analysis. Kyle's has major XRP holdings, moderate in Solana and Ethereum, and minor holdings across 20+ other cryptocurrencies.

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