Ripple executives are expressing frustration over the U.S. Securities and Exchange Commission\u2019s decision to proceed with its appeal in the ongoing legal battle, even as SEC Chair Gary Gensler prepares to step down on January 20.<\/p>\n\n\n\n
Ripple\u2019s Chief Legal Officer, Stuart Alderoty, criticized the SEC in a January 14 post on X (formerly Twitter), stating that the commission will file its appeal brief on schedule despite the upcoming leadership change. Alderoty called the move a “waste of time and taxpayer dollars,” but affirmed Ripple\u2019s confidence in its position.<\/p>\n\n\n\n
In August 2024, a federal court ruled Ripple liable for $125 million, finding that the company had used XRP as an unregistered security to raise funds. While Ripple is appealing this decision, the SEC is challenging the court\u2019s determination that XRP does not inherently qualify as a security.<\/p>\n\n\n\n
Ripple CEO Brad Garlinghouse echoed Alderoty\u2019s criticism, suggesting that the SEC\u2019s approach to crypto regulation could shift under new leadership following President-elect Donald Trump\u2019s inauguration on January 20. Trump had promised during his campaign to replace Gensler, citing widespread criticism from the crypto industry.<\/p>\n\n\n\n
Trump has named former SEC commissioner Paul Atkins as his preferred choice for the next SEC chair. However, Atkins\u2019 appointment will still require Senate confirmation, leaving the future of the SEC\u2019s case against Ripple uncertain.<\/p>\n\n\n\n
The SEC initially filed its case against Ripple in December 2020, during Trump\u2019s first term under SEC Chair Jay Clayton. The litigation has been closely watched as a pivotal case for crypto regulation.<\/p>\n\n\n\n
In August 2024, a federal judge ruled that XRP sales to institutional investors violated securities laws, while programmatic sales on secondary markets did not. The SEC\u2019s appeal focuses on the latter part of the ruling, which could have broad implications for how digital assets are classified in the U.S.<\/p>\n\n\n\n
Ripple\u2019s legal strategy does not include appealing the judgment requiring the $125 million payment. Instead, the company is preparing for the appellate court to hear its arguments on the broader regulatory classification of XRP.<\/p>\n\n\n\n
Ripple has been actively involved in political advocacy, contributing $45 million to the Fairshake PAC, which supported pro-crypto candidates during the 2024 elections. Following the election, Ripple announced an additional $25 million contribution for the 2026 midterms. Alderoty himself donated over $300,000 to political action committees backing Trump, reflecting Ripple\u2019s alignment with pro-crypto political efforts.<\/p>\n","protected":false},"excerpt":{"rendered":"
Ripple executives are expressing frustration over the U.S. Securities and Exchange Commission\u2019s decision to proceed with its appeal in the ongoing legal battle, even as SEC Chair Gary Gensler prepares to step down on January 20. Ripple\u2019s Chief Legal Officer, Stuart Alderoty, criticized the SEC in a January 14 post on X (formerly Twitter), stating […]<\/p>\n","protected":false},"author":5,"featured_media":2301,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[259,2,40],"tags":[],"class_list":{"0":"post-13192","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-altcoins","8":"category-featured","9":"category-regulation"},"acf":[],"yoast_head":"\n