If you think the four-year rift between Ripple Labs and the US Securities and Exchange Commission (SEC) is over, think again. In a series of X (Twitter) posts, Ripple executives shared their frustrations with the SEC after it ignored the court’s recent decision on XRP.
Despite a recent court ruling, Ripple’s Chief Legal Officer, Stuart Alderoty, challenges the agency’s continued claim that XRP is a security. Brad Garlinghouse, Ripple’s CEO, has joined the chorus, calling the SEC “a renegade agency.”
Ripple’s troubles with the SEC has a long history. Ripple was launched in 2012 and caught the industry’s attention in such a short time. By 2013, the company rebranded to Ripple Labs and soon partnered with Germany’s Fidor Bank. Ripple’s decentralization and unique consensus mechanism validate its standing as a force in cross-border payments.
However, its growing popularity comes at a cost: the US SEC launched an investigation into the company, which continues to ripple (no pun intended) until today.
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. https://t.co/9yMWsNHRde
— Brad Garlinghouse (@bgarlinghouse) October 11, 2024
Bitnomial Case Offers A Brief Win For Ripple
The latest flurry of Twitter/X posts from Ripple Labs execs come after the judge ruled on the Bitnomial case. Bitnomial, a popular crypto derivatives exchange, filed a lawsuit against the SEC in an Illinois court. The company challenged the SEC’s claims that its proposed XRP Futures contracts are subject to the agency’s jurisdiction. Bitnomial argues that XRP is not a security, and its anonymous sale in the secondary market is not considered a sale of investment contracts.
US District Judge Analisa Torres ruled in favor of Bitnomial, stating that XRP is not a security. For Ripple Labs and its holders, it’s a win for their cause. But the SEC thinks otherwise, and the agency continues to see Ripple’s token as a security.
Image: Bitcoin Policy Institute
Ripple Team Calls Out SEC’s Stance
Ripple’s legal team mocked the SEC’s stance after it lost in court, yet it continues to call for compliance. The company adds that the move compromises the agency’s integrity and legitimacy. Alderoty further claims that the agency’s stance is unconstitutional and hurts its credibility.
Garlinghouse’s Twitter/X post captures the frustration at Ripple Labs. He says that the agency has entered a “new low.” He thinks that the agency believes it’s above the law by ignoring a court’s ruling.
Ripple Labs Gets Support From Outside The Industry
Ripple Labs has a few supporters outside of the industry. Legal luminaries like John Deaton and Bill Morgan questioned the SEC’s position and motives in the Ripple Labs case. Deaton shared the recent case with Digital Licensing in which the agency was flagged for misconduct, thus raising questions about its approach and policy.
Featured image from CNBC, chart from TradingView