If you thought the four-year standoff between Ripple Labs and the US Securities and Exchange Commission (SEC) was over, think again. In a series of X (Twitter) posts, Ripple executives shared their frustration with the SEC after ignoring the court’s recent ruling on XRP.
Despite the recent court ruling, Ripple’s chief legal officer, Stuart Alderoty, is challenging the agency’s ongoing claim that XRP is a security. Brad Garlinghouse, CEO of Ripple, joined the chorus, calling the SEC a “renegade organization.”
Ripple’s problems with the SEC have a long history. Ripple was launched in 2012 and grabbed the attention of the industry in a short time. In 2013, the company rebranded as Ripple Labs and soon partnered with Germany’s Fidor Bank. Ripple’s decentralized approach and unique consensus approach ensure its position 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 fluctuate (no pun intended) to this day.
The new decline of the renegade agency many thought they could not continue.
The SEC now believes it can operate above the law, ignoring the Court’s ruling that XRP is not a security.
Team Ripple will be closely monitoring and weighing our options for the SEC to respond.
– Brad Garlinghouse (@bgarlinghouse) October 11, 2024
The Bitnomial Case Gives Ripple a Short Win
The latest flurry of Twitter/X posts from Ripple Labs execs comes after a judge ruled in the Bitnomial case. Bitnomial, a popular crypto derivatives exchange, filed a lawsuit against the SEC in an Illinois court. The company disputed the SEC’s claims that its proposed XRP Futures contracts were under the agency’s jurisdiction. Bitnomial says XRP is not a security, and its anonymous sale on the secondary market is not considered a sale of investment contracts.
US District Judge Analisa Torres ruled in favor of Bitnomial, saying XRP is not a security. For Ripple Labs and management, it’s a win for their cause. But the SEC thinks otherwise, and the agency continues to see the Ripple token as a security.
Image: Bitcoin Policy Institute
Ripple Team Calls Out SEC Standing
Ripple’s legal team scoffed at the SEC’s stance after the court loss, yet continues to call for compliance. The company added that this move jeopardizes the integrity and legitimacy of the agency. Alderoty went on to say that the organization’s position is against the constitution and harms its credibility.
Garlinghouse’s Twitter/X post captures Ripple Labs’ frustration. He says the organization has entered “a new low.” He thinks that this organization believes that it is above the law by ignoring the court’s decision.
Ripple Labs Gets Outside Industry Support
Ripple Labs has several supporters outside of the industry. Legal luminaries such as John Deaton and Bill Morgan questioned the SEC’s position and motives in the Ripple Labs case. Deaton shared a recent case with Digital Licensing where the agency was flagged for misconduct, thus raising questions about its approach and policy.
Featured image from CNBC, chart from TradingView