Ripple CEO Criticizes SEC Strategy as XRP Trails Market
Uncertainty over the outcome of the SEC and Ripple appeals left XRP lagging the broader market. Ripple CEO Brad Garlinghouse has continued
Uncertainty over the outcome of the SEC and Ripple appeals left XRP lagging the broader market.
Ripple CEO Brad Garlinghouse has continued to strongly oppose the US Securities and Exchange Commission (SEC), particularly in regards to its ongoing legal actions related to XRP and the appeal linked to the case of Ripple.
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
His latest reaction came following a lawsuit filed by crypto derivatives platform Bitnomial against the SEC regarding XRP futures.
Bitnomial stated: “Bitnomial Exchange LLC has submitted a case contrary to the SEC to restrict them from overstepping their legal authority and claiming joint control over Bitnomial’s XRP futures contracts, which are under the exclusive authority of the CFTC.” Responding to this statement on social media platform X, Garlinghouse expressed his frustration on Friday:
“A new low for a renegade agency that many thought could not sink any further. The SEC now believes it can operate above the law, ignoring a court ruling that XRP is not a security. The Ripple team will observe precisely and evaluate our own options for gripping the SEC accountable.”
Bitnomial argues that XRP futures are not securities and accuses the SEC of exceeding its legal authority. This case underscores growing tensions between the SEC and cryptocurrency companies, many of which argue that the agency’s actions hinder innovation and overstep its legal mandate.
Bitnomial issued a press release regarding the lawsuit, stating:
“Given the latest benchmark decision by the Southern District of New York that XRP is not naturally a security and was not a security when it was exchanged on the secondary market, Bitnomial Exchange is strategically placed to request a court determination that XRP Futures are not security futures. Despite their recent defeat, the SEC still maintains that XRP is a security.”
Bitnomial Exchange, LLC has filed suit against SEC to prevent them overreaching their statutory authority and asserting joint jurisdiction over Bitnomial’s $XRP futures contracts, which are under the sole jurisdiction of the @CFTC.
Read about the complaint here:…
— Bitnomial (@Bitnomial) October 11, 2024
Stuart Alderoty also expressed disappointment in the way the SEC conducted its affairs. He went further by attacking the SEC for what he described as unconstitutional and overly aggressive conduct in the case, which he believed was undermining trust in the agency. Bitnomial’s legal move came after Ripple appealed the final ruling in the SEC vs. Ripple on October 10.
Ripple has faced its own legal challenges from the SEC since December 2020, when the agency sued the crypto company for allegedly conducting an unregistered securities offering by selling $1.3 billion in XRP. In July 2023, Ripple achieved a temporary victory when District Judge Analisa Torres commanded that programmatic sales of XRP on public exchanges did not organize securities. However, it also ruled that direct sales to institutional investors could be considered securities.
Price trends may depend on whether the SEC presents a strong case to challenge programmatic selling. If the SEC presents compelling arguments to appeal the ruling, XRP may fall below $0.50. Conversely, XRP could rise towards $1.00 if the SEC withdraws its appeal, mirroring the price action following the programmatic selling ruling.
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