Ripple CEO Brad Garlinghouse has commented on the company’s recent decision to file a cross-appeal in its legal battle with the U.S. Securities and Exchange Commission (SEC).
Earlier this month, the SEC appealed the court’s ruling that imposed a $125 million civil penalty on Ripple, far less than the $2 billion they initially sought.
On October 7, Ripple filed its cross-appeal, targeting the final judgment issued by Judge Analisa Torres on August 7, 2024. Garlinghouse criticized the SEC’s action in a recent statement shared on X.
He argued that the SEC should have accepted its loss rather than continuing to pursue what he characterized as an aggressive and disruptive agenda.
He also pointed out that SEC Chair Gary Gensler’s leadership has brought a chaotic regulatory environment that stifles innovation, especially within the cryptocurrency sector.
According to the CEO, the company’s goal is to conclude this case in a way that sets a precedent for the cryptocurrency industry, providing clearer regulatory boundaries moving forward. He expressed confidence in Ripple’s ability to lead the industry through this new legal challenge, just as it did in previous phases of the case.
Garlinghouse emphasized that Ripple is committed to advocating for a more transparent and predictable regulatory framework, arguing that the SEC’s current approach is detrimental to technological growth in the U.S.
Ripple’s Cross-Appeal: Legal Perspectives
Stuart Alderoty, Ripple’s Chief Legal Officer, also weighed in on the company’s decision to cross-appeal. He stressed that Ripple’s case against the SEC has significant legal merit, noting that the SEC lost on several key points.
According to Alderoty, the regulator’s initial appeal only underscores its inability to substantiate its claims against Ripple.
Bitnomial Challenges SEC Over XRP Futures
Cryptocurrency derivatives exchange Bitnomial has filed a lawsuit against the SEC, challenging its authority over XRP futures contracts. Bitnomial, which is regulated by the Commodity Futures Trading Commission (CFTC), had applied to offer an XRP-U.S. Dollar futures contract in August. However, shortly after the filing, the SEC intervened, asserting that XRP futures should be classified as “security futures” and thus fall under joint SEC-CFTC jurisdiction.
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According to Bitnomial’s lawsuit, the SEC’s intervention oversteps its regulatory authority. The exchange argues that the CFTC is the appropriate regulator for the proposed futures contract and that the SEC’s actions are unnecessary and legally unfounded.
The dispute between Bitnomial and the SEC is not an isolated case. Earlier this week, Crypto.com filed its lawsuit against the SEC, accusing the regulator of overreaching its authority by claiming that nearly all cryptocurrencies qualify as securities.
Growing Industry Pushback
These lawsuits reflect the growing resistance from cryptocurrency companies to what they perceive as the SEC’s overly aggressive regulatory stance. The outcomes of these legal battles could significantly impact how digital assets, including XRP, are governed in the U.S.
As more players in the industry, including Ripple and Bitnomial, challenge the SEC’s jurisdiction, the broader regulatory landscape for digital currencies is likely to face increased scrutiny.
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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