Ripple CEO Slams SEC for Ignoring Court Ruling on XRP

The conflict between Ripple Labs and the US Securities and Exchange Commission (SEC) is far from over. Ripple executives took to X (Twitter) to express their frustrations, accusing the SEC of ignoring a recent court decision on XRP.

Ripple’s Chief Legal Officer, Stuart Alderoty, continues to dispute the SEC’s claim that XRP is a security, despite a favorable court ruling. Brad Garlinghouse, Ripple’s CEO, went further, labeling the SEC as a “renegade agency” in a public post.

A new low for a renegade agency many thought couldn't sink further.

The SEC now believes it can operate above the law, ignoring a Court's ruling that XRP isn't 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

Ripple has faced legal challenges from the SEC for years. The company, founded in 2012, quickly gained attention in the crypto industry. By 2013, Ripple rebranded as Ripple Labs and partnered with Germany’s Fidor Bank. Ripple’s innovative consensus mechanism and focus on cross-border payments solidified its role in the sector.

However, Ripple’s rise led to an investigation by the SEC, which continues to this day. The SEC claims that XRP is a security, and the dispute has grown over time.

A recent win for Ripple came in the Bitnomial case, where a US District Judge, Analisa Torres, ruled in favor of the crypto company. Bitnomial, a crypto derivatives exchange, challenged the SEC’s stance that XRP Futures contracts fell under its jurisdiction. The judge declared that XRP is not a security, marking a victory for Ripple and its supporters.

Despite this, the SEC maintains its position, still viewing XRP as a security. Ripple’s legal team has criticized the SEC, calling its refusal to comply with the court’s ruling a threat to its legitimacy and credibility. Alderoty argued that the SEC’s stance is unconstitutional and continues to harm the agency’s reputation. Ripple’s CEO, Garlinghouse, voiced his frustration, accusing the SEC of acting as though it is "above the law" by ignoring the court’s decision.

Ripple has gained support beyond the crypto world. Legal experts like John Deaton and Bill Morgan have questioned the SEC’s motives in the case. They point to a recent case involving Digital Licensing, where the SEC was criticized for misconduct, further fueling doubts about the agency’s approach.

Ripple’s legal battle with the SEC is ongoing, but with more legal victories, Ripple’s supporters hope for a shift in the regulatory landscape.