Ripple CEO Brad Garlinghouse remains committed to challenging the SEC’s stance on XRP to the Supreme Court.
Legal battles over cryptocurrency regulations intensify, with potential implications for asset classification and industry standards.
Following recent updates from CNF, Ripple’s Chief Legal Officer, Stuart Alderoty, has called for U.S. Congress intervention amid the ongoing regulatory challenges. He urges Congress to halt funding for the SEC, emphasizing the need for legislative support to navigate the complex landscape of cryptocurrency regulations.
Continued Legal Battle with the SEC
Ripple faces ongoing legal challenges from the SEC, which plans to appeal a 2023 ruling that secondary sales of XRP do not constitute security offerings. Despite this, Ripple CEO Brad Garlinghouse remains committed to escalating the fight to the Supreme Court if necessary. This was highlighted during a recent discussion at Columbia Business School by Linda Steward, a former SEC litigator. Watch the detailed discussion on CNF’s YouTube video.
Recent judicial rulings, like the Second Circuit Court of Appeals’ Govil decision, suggest a shifting regulatory environment potentially favorable to Ripple. These rulings imply that the SEC might not claim disgorgement if there is no financial loss to the buyer, strengthening Ripple’s legal position.
In my tweets today, I also highlight the escalating legal tensions: a former SEC litigator predicts the Ripple vs. SEC showdown could reach the Supreme Court. Despite the ongoing debate over asset classification, Ripple remains committed.
Regulatory Changes and Financial Impact
Amidst these challenges, there are significant regulatory changes on the horizon. According to a report by Eleanor Terrett of Fox Business, starting May 22nd, the SEC is set to increase transaction fees dramatically for public companies, from $8 to $27.80 per $1 million in transactions. This fee hike, necessitated by a shortfall in the SEC’s budget, underscores the financial strain on the regulatory body as it seeks to stabilize its funding.
Ripple’s Market Response
The ongoing legal uncertainties have impacted Ripple’s market performance. As visualized on Coin Market Cap, Ripple (XRP) is currently trading at $0.4963, marking a slight decrease of 0.052% over the past day and a substantial 19.77% drop over the past week.
Ripple’s readiness to take their legal challenges to the Supreme Court, coupled with their call for Congressional support, highlights the intense regulatory scrutiny facing the cryptocurrency industry. The outcomes of these legal battles will likely influence how digital assets are regulated and classified in the future, affecting stakeholders across the crypto ecosystem.
