Will Continue the Battle Till the End: Ripple CEO to SEC

Ripple CEO Brad Garlinghouse stated that the firm will proceed against the U.S. Securities and Exchange Commission (SEC) following the recent court decision in Ripple’s favor. In an X post on Wednesday, Garlinghouse stated that the firm would fight to the end, even though XRP has already been considered a non-security. 

If Gensler and the SEC were rational, they would have moved on from this case long ago. It certainly hasn’t protected investors and instead has damaged the credibility and reputation of the SEC.

Somehow, they still haven't gotten the message: they lost on everything that… https://t.co/1hW7xVSL9b

— Brad Garlinghouse (@bgarlinghouse) October 2, 2024

The appeal was filed by the SEC in response to the 2023 ruling, implying that the secondary sales of XRP were not a security under the law. However, the Ripple CEO made a bold statement claiming that the legal status of XRP will not change because of this appeal. Notably, the case might proceed until 2026. 

In July 2023, Judge Analisa Torres stated that XRP trading would not be a security under the Howey Test, but its institutional sales would be a security under US law. While Ripple rejoiced over the partial win, the SEC opposed the ruling, holding that this would facilitate secondary offerings. Undeterred by the appeal, Garlinghouse asserted that the ruling would be in his favor and vowed that he would fight till the end. 

XRP’s status as a non-security is the law of the land today – and that does not change even in the face of this misguided – and infuriating – appeal.

Based on the ruling, Ripple was fined $125 million for its institutional XRP sales. However, earlier this month, Ripple requested a stay on the penalty fee, to which the SEC approved. This ongoing battle has kept the cryptocurrency environment in vigil. Traders and investors wait in anticipation as the final verdict would play a major role in the future of the XRP. 

Interestingly, on Thursday, the SEC posted an official announcement on their X profile, stating that the director of the Division of Enforcement, Gurbir S. Grewal, would be relieved of his duties. This news comes a few hours before the appeal against Ripple.