Ripple’s CEO has intensified criticism of the U.S. Securities and Exchange Commission (SEC), accusing the agency of ignoring a court ruling that XRP is not a security and overstepping its legal bounds. His remarks came after Bitnomial Exchange filed a lawsuit against the SEC, disputing the regulator’s authority over XRP futures. The case adds to rising tensions between crypto firms and the SEC over perceived regulatory overreach.
Ripple CEO Accuses SEC of Overreach Amid Lawsuit Over XRP Futures
Ripple CEO Brad Garlinghouse has continued to strongly oppose the U.S. Securities and Exchange Commission (SEC), particularly regarding its ongoing legal actions concerning XRP and the appeal tied to Ripple’s case.
His latest reaction followed a lawsuit filed by crypto derivatives platform Bitnomial against the SEC concerning XRP futures. Bitnomial stated: “Bitnomial Exchange LLC has filed suit against SEC to prevent them overreaching their statutory authority and asserting joint jurisdiction over Bitnomial’s XRP futures contracts, which are under the sole jurisdiction of the CFTC.” Responding to this statement on social media platform X, Garlinghouse expressed his frustration on Friday:
A new low for a renegade agency many thought couldn’t sink further. The SEC now believes it can operate above the law, ignoring a court’s ruling that XRP isn’t a security.
“Team Ripple will be watching closely and weighing our own options to hold the SEC accountable,” the Ripple chief executive added.
Bitnomial’s legal challenge to the SEC centers on the agency’s claim of shared oversight over XRP futures. The exchange asserts that the regulation of these contracts should belong solely to the Commodity Futures Trading Commission (CFTC).
Also Read: XRP Army Starts Petition to Oppose SEC Appeal in Ripple Case
Arguing that XRP futures are not securities, Bitnomial accuses the SEC of exceeding its legal authority. This case underscores rising tensions between the SEC and cryptocurrency businesses, many of which argue that the agency’s actions hamper innovation and overreach its statutory mandate. Garlinghouse, in alignment with Bitnomial’s position, reiterated his concerns about what he views as the SEC’s consistent overstepping of its powers.
Ripple has faced its own legal challenges from the SEC since December 2020, when the agency sued the crypto firm for allegedly conducting an unregistered securities offering by selling $1.3 billion in XRP. Ripple has maintained that XRP is not a security. In July 2023, Ripple won a partial victory when District Judge Analisa Torres ruled that programmatic sales of XRP on public exchanges did not constitute securities. However, she also ruled that direct sales to institutional investors could be considered securities.
The SEC filed a formal notice of appeal against Judge Torres’ ruling earlier this month, prompting Ripple to file a cross-appeal. These legal disputes reflect broader clashes between the SEC and the crypto industry over regulatory authority. Ripple’s legal counsel, led by Chief Legal Officer Stuart Alderoty, has also raised concerns over the SEC’s actions, suggesting they may challenge constitutional boundaries regarding the scope of the agency’s powers.
Source: Bitcoin
