In a significant turn of events, the U.S. Securities and Exchange Commission (SEC) has filed a notice of appeal against the recent ruling in the Ripple case, leading to a notable decline in the price of XRP. This development has elicited a strong reaction from the community, including Ripple CEO Brad Garlinghouse, who expressed his frustration and determination to continue the legal battle.
Background of the Lawsuit and XRP Price Decline
The SEC’s appeal follows a July 2023 ruling by Judge Analisa Torres, which declared that XRP is not a security when sold to retail investors on digital asset exchanges. However, the judge found that the sale of XRP to institutional investors violated federal securities laws.
In August 2024, Judge Torres issued the final ruling on the case, ordering Ripple to pay $125 million to the SEC, significantly less than the $2 billion it initially sought.
Following the SEC’s notice of appeal, XRP’s price experienced a sharp decline, dropping by nearly 10%. The cryptocurrency, which had climbed above $0.6 on September 28 and reached a high of $0.6647 on September 29, has fallen significantly, currently trading at $0.5251. This volatility has caused concern among investors, many of whom see the SEC’s continued litigation as a destabilizing tool for the market.
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Garlinghouse’s Response
One user shared a chart showing XRP’s recent decline. Garlinghouse replied, stating, “This is a chart that shows you how the SEC is protecting you. (yes, that’s sarcasm.)”
This is a chart that shows you how the SEC is protecting you. (yes, that's sarcasm.)
— Brad Garlinghouse (@bgarlinghouse) October 2, 2024
For a long time, experts including Ripple Chief Legal Officer (CLO) Stuart Alderoty argued that the SEC could not demand a huge penalty from Ripple as no investors were harmed, and there were no victims to compensate. The SEC’s job is to protect investors, and its recent actions are harming XRP investors who were finally seeing progress from the digital asset.
Garlinghouse did not hold back in his response to the SEC’s appeal. He criticized the SEC’s decision, accusing the agency of acting irrationally and misusing taxpayer money.
Garlinghouse stated, “I’m not surprised. I’m pissed. I’m pissed that the SEC is spending OUR (taxpayer) money on a losing battle. I’m pissed that they are able to act without recourse or consequence”.
Garlinghouse reiterated his confidence in Ripple’s position, asserting that the SEC has lost on every significant aspect of the case. Garlinghouse has previously stated that he is willing to take the legal battle to the U.S. Supreme Court, and he emphasized that XRP’s status as a non-security remains legally upheld and that Ripple will continue to fight to maintain this status.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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