The continuing legal fight between Ripple and the US Securities and Exchange Commission (SEC) has reached a critical point as the SEC appeals a major verdict. Despite an approaching leadership transition at the SEC, the regulatory body will continue with its present enforcement activities.
In a recent statement, Ripple’s Chief Legal Officer Stuart Alderoty blasted the SEC’s reluctance to delay the release of its appeal brief, calling it a waste of time and resources. “We are confident in our position on appeal and look forward to engaging with the new SEC leadership to resolve this matter,” Alderoty told reporters.
The action, which began in December 2020, centered upon the SEC’s allegations that Ripple utilized XRP as an unregistered security to raise $125 million. While a federal judge determined in August 2024 that certain XRP sales did not constitute securities transactions, the SEC continues to contest key elements of the decision.
Ripple CEO Brad Garlinghouse mirrored Alderoty’s remarks, implying that the regulatory landscape for cryptocurrencies may change following the appointment of new leadership. Outgoing SEC Chair Gary Gensler will resign on January 20, making way for a Trump-appointed successor. Former SEC Commissioner Paul Atkins is said to be a prospective nominee, indicating a shift in the agency’s approach to cryptocurrency regulation.
Ripple has shown strong political and financial participation, donating millions to crypto-friendly political action committees. These actions demonstrate the company’s commitment to creating a regulatory climate that is beneficial to digital assets.
The progress of the SEC’s appeal closely influences XRP’s market performance. While XRP has demonstrated resilience, its future trajectory is dependent on the outcome of the ongoing court dispute. Ripple remains strong in its defense, believing that the new SEC leadership would view the matter with a fresh perspective.
Meanwhile, the broader cryptocurrency market, including Bitcoin, has responded favorably to the anticipated regulatory reforms. Bitcoin’s recent rise above $90,000 indicates market optimism about crypto-friendly measures under the new administration. The prospect of a US Strategic Bitcoin Reserve adds to enthusiasm, with industry heavyweights pressing for its implementation.
Ripple’s legal team, as well as the crypto sector as a whole, will be keenly watching the SEC’s appeal proceed. The outcome could set a critical precedent for the future of cryptocurrency regulation in the United States.
