Bitrabo Editorial
The ongoing conflict between Ripple Labs and the US Securities and Exchange Commission (SEC) shows no sign of resolution. Recently, Ripple’s leadership voiced their discontent through a series of posts on X (formerly Twitter) regarding the SEC’s disregard for the latest court ruling concerning XRP.
Despite a recent court verdict, Ripple’s Chief Legal Officer, Stuart Alderoty, disputes the SEC’s persistent assertion that XRP qualifies as a security. Ripple’s CEO, Brad Garlinghouse, has echoed these sentiments, labeling the SEC as a “renegade agency.”
The friction between Ripple and the SEC dates back several years. Ripple, established in 2012 and rebranded to Ripple Labs in 2013, gained traction quickly, notably partnering with Germany’s Fidor Bank. Its innovative approach has positioned Ripple as a key player in international payment systems.
However, with its rise in popularity came scrutiny, leading to an ongoing investigation by the SEC that remains unresolved.
A new low for a renegade agency many thought couldn’t sink further.
The SEC now believes it can operate above the law, ignoring a Court’s ruling that XRP isn’t a security.
Team Ripple will be watching closely and weighing our own options to hold the SEC accountable.
— Brad Garlinghouse (@bgarlinghouse) October 11, 2024
Bitnomial Case Provides Momentary Relief for Ripple
The recent comments from Ripple executives follow a court decision in the Bitnomial case. Bitnomial, a well-known crypto derivatives exchange, has taken legal action against the SEC in Illinois, contesting the agency’s claims that its proposed XRP Futures contracts fall under its jurisdiction. Bitnomial asserts that XRP is not classified as a security, emphasizing that its anonymous trading in secondary markets does not constitute investment contracts.
US District Judge Analisa Torres ruled in favor of Bitnomial, affirming that XRP is not a security. While this represents a victory for Ripple Labs and its supporters, the SEC maintains its position regarding Ripple’s token classification.
Ripple Criticizes SEC’s Position
Following the unfavorable ruling for the SEC, Ripple’s legal representatives criticized the agency for continuing to demand compliance. They assert that this behavior undermines the SEC’s integrity and credibility. Alderoty even labeled the agency’s stance as unconstitutional, questioning its overall reputation.
Garlinghouse’s reactions on Twitter/X reflect the discontent within Ripple Labs, noting the “new low” the agency has reached by allegedly disregarding judicial authority.
Ripple Labs Receives Support from Allies Outside the Industry
Ripple also has supporters from beyond its immediate sector. Influential figures like John Deaton and Bill Morgan have publicly scrutinized the SEC’s stance and motivations regarding the Ripple case. Deaton highlighted recent instances of misconduct involving the SEC, which raises concerns about the agency’s practices and policies.
Featured image from CNBC, chart from TradingView