Ripple’s Chief Legal Officer, Stuart Alderoty, has criticized the U.S. Securities and Exchange Commission (SEC) for refusing to delay the filing of its appeal brief in the ongoing legal battle against the blockchain firm. Alderoty expressed his frustration on social media, labeling the SEC’s persistence as a “waste of time and taxpayer dollars,” yet reaffirmed confidence in Ripple’s position as the case advances to the appellate court.
This development comes amid significant changes in the SEC’s leadership, with Chair Gary Gensler set to resign on January 20. Ripple’s CEO, Brad Garlinghouse, echoed Alderoty’s sentiments, suggesting that the SEC’s approach to cryptocurrency enforcement could shift under the incoming administration. Garlinghouse hinted at a more favorable regulatory environment for digital assets following the leadership transition.
The SEC’s lawsuit against Ripple, initiated in December 2020, alleges that the company conducted an unregistered securities offering through its sale of XRP tokens. In August 2024, a judge ruled that Ripple was liable for $125 million, asserting that XRP was used as an unregistered security to raise funds. The SEC’s decision to proceed with the appeal, despite the imminent change in leadership, indicates the regulator’s commitment to pursuing the case.
As the legal proceedings continue, the cryptocurrency industry is closely monitoring the case, which could set a precedent for how digital assets are regulated in the United States. The outcome may influence future enforcement actions and provide clarity on the classification of cryptocurrencies as securities. Ripple’s leadership remains steadfast in their defense, anticipating constructive engagement with the SEC’s new leadership to resolve the matter.
