XRP Case Could Head to Supreme Court as Ripple Battles SEC
Ripple's legal battle with the SEC over XRP may soon reach the U.S. Supreme Court
The lawsuit involving Ripple Labs and the U.S. Securities and Exchange Commission (SEC) about whether XRP is a security will likely escalate to the U.S. Supreme Court.
This follows a pivotal ruling in a similar case involving Coinbase, where the decision favored the SEC, thus strengthening the agency’s position.
During a discussion at Columbia Business School, former SEC crypto litigation chief Ladan Stewart shared insights that the SEC is poised to continue its regulatory actions against cryptocurrency firms.
Despite no longer working with the SEC, Stewart’s views reflect a deep understanding of the agency’s strategies.
Stewart highlighted the impact of the Coinbase case decision, suggesting it could reassure the SEC to persist with its regulatory pursuits.
She also pointed out the potential for cases like those against Ripple and Coinbase to reach the Supreme Court to clarify the definition of securities within cryptocurrency.
The panel also addressed how U.S. law views digital assets, focusing on whether the tokens or their sales methods constitute investment contracts.
Stewart noted that the SEC regards the sale processes, not the tokens themselves, as the key issue.
The discussion featured different opinions from legal experts. Rebecca Rettig of Polygon questioned the practical aspects of what needs to be registered.
At the same time, Lewis Cohen of DLx Law critiqued the SEC’s approach as potentially leading to regulation through enforcement.
This debate underlines a central challenge for the cryptocurrency industry: operating legally when regulations are unclear or impractical.
The discussion concluded on a civil note, acknowledging the ongoing and significant debates shaping the future of cryptocurrency regulation.
Ripple’s CEO Brad Garlinghouse has vowed to continue fighting the SEC’s stance on XRP, emphasizing their commitment to the cause.
Ripple’s Chief Legal Officer, Stuart Alderoty, also noted that the Supreme Court has frequently ruled against the SEC, providing a glimmer of hope for their case.
