In a significant development in the ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC), Ripple’s chief legal officer, Stuart Alderoty, vehemently criticized the SEC’s decision not to delay its appeal filing regarding a civil judgment against the blockchain company. This appeal follows a August 2024 ruling that deemed Ripple liable for $125 million, with the SEC alleging that the firm improperly utilized its cryptocurrency, XRP, as an unregistered security to secure funding.
Despite the imminent resignation of SEC Chair Gary Gensler on January 20, Ripple’s legal team expressed frustration at the regulator’s reluctance to postpone the appeal. In a post on X (formerly Twitter), Alderoty remarked, “What a waste of time and taxpayer dollars. Nevertheless, we are confident in our position on appeal and look forward to working with new SEC leadership to resolve this matter.” This statement underscores Ripple’s resolve to contest the SEC’s actions and maintain the legitimacy of XRP within the crypto landscape.
Ripple CEO Brad Garlinghouse echoed Alderoty’s sentiments, hinting at a potential shift in the SEC’s enforcement strategy under the anticipated new administration. Donald Trump, who is expected to recommence his presidential term, has been vocal about his intent to replace Gensler, a move that could signal a more favorable environment for cryptocurrencies.
The SEC’s legal actions against Ripple, initiated in December 2020, continue to provoke discussions regarding regulatory practices affecting the crypto industry. It is noteworthy that Alderoty has made substantial political contributions, including over $300,000 to support campaigns aligning with pro-crypto interests. Ripple’s financial backing of the Fairshake PAC, totaling $45 million in contributions, further emphasizes the firm’s commitment to influencing the upcoming electoral landscape in favor of cryptocurrency.
As this case evolves, the upcoming change in SEC leadership raises questions about the future direction of crypto regulation and how the new commission head will approach the ongoing litigation against Ripple. Many in the industry are watching closely, as the outcomes could set significant precedents for future regulatory actions involving digital assets.
