Ripple CEO Criticizes Gensler’s Approach as SEC Preps January 15 Appeal
Ripple CEO Brad Garlinghouse is calling out SEC Chairman Gary Gensler for what he calls “regulation-by-enforcement”.
This comes as the SEC is set to file its opening brief in the appeal of Ripple’s win on January 15. The case started in December 2020 when the SEC sued Ripple for selling XRP as an unregistered security. But in 2023 the court ruled in Ripple’s favor saying XRP sales to retail investors were not securities.
On X (formerly Twitter) Garlinghouse called out Gensler’s enforcement actions as a “failed” agenda. He also asked why Gensler is focusing on regulations in the middle of the 2024 election cycle and when the public is concerned. Ripple’s legal team asked to delay the January 15 deadline for the opening brief but the SEC denied it and Ripple officials are frustrated. Ripple’s Chief Legal Officer, Stuart Alderoty, called the SEC’s move a “waste of time and taxpayer dollars”.
Ripple’s Legal Strategy Amid SEC’s Appeal
Despite the SEC’s appeal Ripple is feeling good about their legal position. Alderoty said they are looking forward to working with new SEC leadership after Gensler leaves on January 20. Ripple’s legal team feels they are well positioned to win at the appellate level and expect a change in direction under new leadership.
Gensler’s departure could mean a change in the SEC’s approach to crypto regulation. Ripple and other industry players have been criticizing Gensler for the agency’s focus on enforcement rather than rule-making, a sentiment that is gaining traction in the crypto community.
Gensler’s Final Words and Ripple’s Future Outlook
As Gensler is leaving the SEC he gave an interview where he clarified his thoughts on crypto. He said Bitcoin is a commodity not a security but other tokens including XRP would be securities. He also said compliance with AML and securities laws which many crypto assets have not met.
Despite Gensler’s comments Ripple’s case has given the industry hope, especially with predictions of regulatory changes. Analysts are also saying XRP’s price could go up big time with some predicting it could hit $8 soon.
Key Points:
Ripple CEO Brad Garlinghouse criticizes SEC’s “regulation-by-enforcement.”
SEC prepares to appeal Ripple’s legal victory, with a deadline of January 15.
Ripple optimistic about legal prospects under new SEC leadership after Gensler’s exit.
XRP Price Outlook and Market Speculation
As the case continues XRP’s price has been watched closely. A big 100 million XRP transaction worth over $265 million was just recorded between unknown wallets. Analysts including JPMorgan are also becoming more optimistic on the crypto market, expecting new ETFs for assets like XRP and Solana (SOL)
