NewsRipple vs SEC AGAIN?! Garlinghouse Slams ‘Misguided’ Lawsuit
Qadir AK3 Oct 20242 min read
Ripple CEO Brad Garlinghouse did not hold back in a recent statement addressing the U.S. Securities and Exchange Commission’s (SEC) ongoing lawsuit against Ripple. Expressing his frustration, Garlinghouse singled out SEC Chair Gary Gensler, arguing that if the agency were acting rationally, the case would have been dropped long ago.
Instead, he claims, the SEC has damaged its own credibility rather than protecting investors. Garlinghouse further highlighted that Ripple and the broader crypto industry have already secured critical victories, including confirming XRP’s status as a non-security.
XRP’s Status is Clear, Despite SEC’s Appeal
Garlinghouse emphasized that XRP’s legal status as a non-security is now well established. Despite the SEC’s decision to appeal, Garlinghouse remains confident, calling the appeal misguided and infuriating. He pointed out that when the SEC previously attempted an interlocutory appeal, it did not challenge XRP’s non-security status—an important legal milestone that Ripple intends to defend.
SEC’s Embarrassing Decision
Ripple’s Chief Legal Officer, Stuart Alderoty, shared Garlinghouse’s sentiment, calling the SEC’s decision to appeal disappointing but not surprising. Alderoty described the lawsuit as an “embarrassment” for the SEC, especially after the court rejected claims that Ripple acted recklessly.
He emphasized that the case involves no fraud allegations, no victims, and no financial losses—factors that, according to Alderoty, further weaken the SEC’s case.
Ripple Is Ready to Fight Back!
Alderoty went on to accuse the SEC of engaging in “litigation warfare” against the crypto industry, suggesting the agency is using the courts to delay innovation rather than apply the law fairly. Ripple is considering filing a cross-appeal to challenge the SEC’s position further. Alderoty vowed that Ripple is fully prepared to continue fighting in the appellate court, positioning the company as a leader in defending the entire crypto sector.
In a notable twist, Gurbir Grewal, the SEC’s Enforcement Director, resigned just an hour before the SEC announced its appeal. While neither Garlinghouse nor Alderoty explicitly linked Grewal’s departure to the lawsuit, the timing has raised speculation about possible internal turmoil within the agency and its broader strategy moving forward.
Ripple remains committed to defending XRP’s non-security status and pushing back against what they see as a misguided, and ultimately futile, attempt by the SEC to extend the lawsuit. Both Garlinghouse and Alderoty remain resolute that Ripple and the broader crypto industry will continue to prevail.
