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Ripple CEO vows to fight SEC's appeal as case drags on

Ripple CEO vows to fight SEC's appeal as case drags on

Grafa2024/10/03 04:45
By: Isaac Francis
XRP-2.43%

Ripple (CRYPTO:XRP) CEO Brad Garlinghouse has firmly stated that Ripple Labs will continue to fight the U.S. Securities and Exchange Commission (SEC) in court following the regulator’s recent notice of appeal.

The SEC seeks to overturn a district court ruling from last year that declared XRP, Ripple’s associated cryptocurrency, was not a security when sold on public exchanges.

The legal battle, which started in 2020, could potentially extend into 2026.

In a social media post on October 2, Garlinghouse criticised the SEC’s move, stating, "Somehow, they still haven’t gotten the message: they lost on everything that matters."

He reiterated Ripple's stance that XRP's status as a non-security remains intact, even with the SEC's appeal.

"We’ll fight in court for as long as we need," he added, emphasising that the current ruling is still the law.

The original court decision from New York District Judge Analisa Torres was a partial victory for Ripple.

While the judge ruled that XRP sold on public exchanges did not qualify as a security, she also concluded that sales to institutional investors should have complied with securities regulations.

Ripple was fined $125 million for those institutional sales, though the penalty was temporarily stayed as both parties prepared for the appeal.

Ripple’s chief legal officer, Stuart Alderoty, also expressed disappointment in the SEC’s continued litigation.

"The SEC’s lawsuit has been irrational and misguided from the start," Alderoty remarked, noting Ripple is ready to defend itself again in the appellate court.

According to legal experts, the appeal process could be prolonged.

Lawyer Fred Rispoli predicted that the Second Circuit Court of Appeals might not issue a ruling until early 2026, with oral arguments possibly scheduled for late 2025.

At press time, the XRP price was $0.5433.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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