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-posts (Twitter), Ripple executives shared their frustrations with the SEC after it ignored the court’s recent decision on XRP.
Despite a recent one court rulingStuart Alderoty, Ripple’s Chief Legal Officer, disputes the agency’s continued claim that XRP is a security. Ripple CEO Brad Garlinghouse has joined the chorus, calling the SEC “a renegade agency.”
Ripple’s problems with the SEC have a long history. Ripple was launched in 2012 and quickly attracted the attention of the industry. In 2013, the company was renamed Ripple Labs and soon entered into a partnership with Germany’s Fidor Bank. Ripple’s decentralization and unique consensus mechanism cement its position as a force in cross-border payments.
However, the growing popularity has come at a price: the US SEC launched an investigation into the company, which continues to ripple (no pun intended) to this day.
A new low for a renegade agency that many thought could sink no further.
The SEC now believes it can operate above the law and is ignoring a court’s ruling that XRP is not 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 messages from Ripple Labs executives comes after the judge ruled on the case Bitnomial case. Bitnomial, a popular crypto derivatives exchange, has filed a lawsuit against the SEC in an Illinois court. The company disputed the SEC’s claims that the proposed XRP Futures contracts fall under the agency’s jurisdiction. Bitnomial argues that XRP is not a security and its anonymous sale on the secondary market is not considered a sale of investment contracts.
U.S. 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 differently, and the agency continues to view Ripple’s token as collateral.
Image: Bitcoin Policy Institute
Ripple team announces SEC position
Ripple’s legal team mocked the SEC’s position after it lost in court, but continues to call for compliance. The company adds that this move compromises the agency’s integrity and legitimacy. Alderoty further claims that the agency’s position is unconstitutional and damages its credibility.
Garlinghouse’s Twitter/X post reflects the frustration at Ripple Labs. He says the agency has reached a “new low.” He thinks the agency believes it is above the law by ignoring a court’s ruling.
Ripple Labs is getting support from outside the industry
Ripple Labs has a few supporters outside the industry. Legal luminaries like John Deaton and Bill Morgan questioned the SEC’s position and motives in the Ripple Labs case. Deaton shared with Digital Licensing the recent case in which the agency was found guilty of misconduct, raising questions about its approach and policies.
Featured image from CNBC, chart from TradingView