Ripple’s Garlinghouse Promises to Fight SEC’s XRP Appeal

Ripple Labs CEO Brad Garlinghouse committed to contesting the US Securities and Exchange Commission (SEC) in court following the regulator’s announcement of plans to appeal a district court’s ruling regarding its XRP token from last year.

“If Gensler and the SEC were logical, they would have moved on from this case a long time ago,” Garlinghouse stated in an Oct. 2 X post, referring to SEC chair Gary Gensler. “Somehow, they have yet to grasp the fact: they lost everything that holds significance.”

SEC Appeals Ruling 

On Oct. 2, the SEC lodged an appeal in a bid to reverse a decision made by Judge Analisa Torres last year. She ruled that XRP does not qualify as a security when offered to the public, granting Ripple and the crypto sector what seemed to be a significant partial victory against the regulator.

However, Torres found that XRP is considered a security when sold to institutional investors, providing a partial triumph for the SEC. The SEC pursued legal action against Ripple, asserting that XRP is a security and that the company had sold unregistered securities to investors.

Ripple Lawyer Calls SEC Appeal Decision “Disappointing”

Ripple’s chief legal officer Stuart Alderoty reacted to the SEC’s announcement on X, deeming the action “disappointing” as it merely extends what he called “a total embarrassment for the agency.”

(1) The SEC’s decision to appeal is disappointing, but not unexpected. This merely prolongs what’s already a complete embarrassment for the agency. The Court has already dismissed the SEC’s claim that Ripple acted recklessly, and there were no allegations of fraud and, of course,… https://t.co/PQozMMtthf

— Stuart Alderoty (@s_alderoty) October 2, 2024

Alderoty emphasized that the court had already dismissed the SEC’s assertion that Ripple acted recklessly. Moreover, there were no accusations of fraud throughout the case, and no victims or losses were reported in Ripple’s sale of XRP.

He further noted that the SEC’s lawsuit against Ripple “has been unreasonable and misguided from the outset.”

Alderoty also questioned whether the timing was coincidental regarding the resignation of the SEC’s Enforcement Director, Gurbir Grewal, just one hour before the appeal was filed.

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