Ripple executives have criticized the U.S. Securities and Exchange Commission over its recent approach and legal strategies, as Ripple’s XRP token sees increased trading activity.
Ripple CEO Brad Garlinghouse criticized SEC Chairman Gary Gensler, accusing him of continuing a “regulation by enforcement” agenda. Gensler, who is set to step down on Jan. 20, has been a central figure in the SEC’s efforts to regulate the cryptocurrency industry.
Garlinghouse suggested that these efforts overlook broader public concerns and the impact of the 2024 elections.
Chief Legal Officer Stuart Alderoty added to the criticism, announcing that the SEC declined Ripple’s request to delay filing its appeal brief, which is due January 15.
Alderoty called the decision unnecessary but reaffirmed Ripple’s confidence in its legal position. He expressed optimism that the case would reach a resolution under new SEC leadership.
The price of XRP gained over 9%, reaching nearly $2.70.
Ripple vs. SEC
Ripple and the SEC have been in court since 2020. The SEC alleges that Ripple violated securities laws by selling XRP, a cryptocurrency, without registering it as a security.
Ripple denies the claims, arguing that XRP is a digital asset similar to Bitcoin (BTC) or Ethereum (ETH), which the SEC has not classified as securities.
The dispute took a significant turn in August 2024 when a court ordered Ripple to pay $125 million in penalties. The SEC later appealed the decision, and Ripple’s recent request to delay filing its appeal brief was denied by the agency.
