Ripple CEO Brad Garlinghouse has strongly criticized SEC Chairman Gary Gensler for continuing with a “regulation-by-enforcement” approach during his tenure. Garlinghouse’s remarks come as Ripple prepares for the SEC’s opening brief in its appeal of Ripple’s 2023 legal victory, scheduled for January 15. The dispute centers around the SEC’s claim that Ripple offered XRP as an unregistered security. A 2023 court ruling favored Ripple, but the SEC has filed for an appeal.
On X (formerly Twitter), Garlinghouse accused Gensler of ignoring public concerns and staying committed to his failed regulatory agenda. Ripple’s Chief Legal Officer, Stuart Alderoty, also condemned the SEC’s refusal to extend the January 15 deadline for the opening brief, calling it a “waste of time and taxpayer dollars.” Alderoty expressed optimism about the case moving forward with new SEC leadership after Gensler’s expected departure on January 20.
The SEC’s 2020 lawsuit accused Ripple of selling XRP as an unregistered security. However, in a landmark 2023 ruling, the court determined that XRP sales to retail investors did not constitute a security transaction, a decision the SEC is now challenging.
As Gensler prepares to leave the SEC, he clarified his stance on cryptocurrency regulation in an interview with CNBC. While he maintains that Bitcoin is not a security, likening it to a speculative commodity like gold, he affirmed that most other tokens, including XRP, should be considered securities subject to U.S. laws. Gensler’s regulatory approach has drawn criticism from Ripple and others, who argue that enforcement actions rather than formal rulemaking have caused confusion in the industry.
Ripple’s legal team is hopeful for a resolution under new leadership. The ongoing battle has sparked speculation in the crypto market, with analysts anticipating a potential surge in XRP’s price, possibly reaching $8 in the near future.
Meanwhile, the broader crypto space is witnessing growing optimism, with JPMorgan analysts noting a rise in interest surrounding new exchange-traded funds (ETFs) targeting cryptocurrencies like XRP and Solana.
Related topics:
XRP’s Path to $5: Whale Activity Sparks Market Speculation
