Ripple CEO Slams SEC: Legal Tug-of-War Over XRP Continues

Ripple CEO Brad Garlinghouse Takes a Stand Against SEC's Actions on XRP

In recent developments regarding the cryptocurrency landscape, Ripple CEO Brad Garlinghouse has voiced strong opposition to the U.S. Securities and Exchange Commission (SEC). His criticisms particularly revolve around the SEC's legal actions against XRP and the ongoing appeals in the Ripple case, which have garnered significant attention.

Bitnomial's Lawsuit Against the SEC

Recently, the cryptocurrency derivatives platform Bitnomial filed a lawsuit against the SEC, challenging the regulatory authority pertaining to XRP futures. In a notable statement on X, Garlinghouse commented on the SEC’s actions, stating, "For an agency many believe couldn't fall further, they have once again broken new lows. The SEC now thinks it can override the law, ignoring the court's ruling that XRP is not a security." This highlights the ongoing tensions between cryptocurrency platforms and regulatory bodies.

Background of the Legal Conflict

Prior to this lawsuit, Bitnomial—regulated by the Commodity Futures Trading Commission (CFTC)—sued the SEC after self-certifying its XRP/USD futures contract in August, following a significant ruling by a federal judge that dismissed the SEC's claims labeling XRP as a security. This ruling has opened the door for platforms like Bitnomial to operate with XRP futures, although the SEC’s pushback has created a complex regulatory environment.

SEC's Response to Bitnomial

After Bitnomial filed its lawsuit, the SEC promptly contacted the exchange, asserting that XRP futures should be classified as "security futures." The SEC claims that these fall under the joint jurisdiction of both the SEC and CFTC. Consequently, the SEC warned Bitnomial that continuing to list XRP futures could lead to violations of federal securities laws.

Regulatory Ambiguity and Industry Impact

The SEC has urged Bitnomial to comply with additional requirements, which include registering as a national securities exchange before proceeding with the listing of XRP futures. This situation underscores the broader compliance challenges and regulatory ambiguities faced by cryptocurrency platforms in the U.S.

Conclusion

As the legal battles unfold, the cryptocurrency community watches closely to see how these developments may impact the future of digital asset trading and regulation in the United States. With leaders like Brad Garlinghouse vocalizing their opposition to the SEC, the clash between innovation and regulation in the crypto space continues to evolve.