Lawrence Damilola
Ripple Labs CEO Brad Garlinghouse has pledged to continue the company’s legal fight with the U.S. Securities and Exchange Commission (SEC) after the regulator announced plans to appeal a recent court ruling. The appeal follows Ripple’s partial victory in a lawsuit filed by the SEC in 2020, which accused the company of illegally selling unregistered securities through its XRP token.
In a post on X (formerly Twitter) yesterday, Garlinghouse stated, “Somehow, they still haven’t gotten the message: they lost on everything that matters,” referring to the SEC’s decision to challenge the ruling. He added, “While we’ll fight in court for as long as we need, let’s be clear: XRP’s status as a non-security is the law of the land today.” Garlinghouse also criticized the appeal as “misguided” and “infuriating.”
If Gensler and the SEC were rational, they would have moved on from this case long ago. It certainly hasn’t protected investors and instead has damaged the credibility and reputation of the SEC.
— Brad Garlinghouse (@bgarlinghouse) October 2, 2024
Somehow, they still haven't gotten the message: they lost on everything that… https://t.co/1hW7xVSL9b
Ripple’s Legal Position
In July 2023, Judge Analisa Torres of the New York District Court ruled that XRP was not a security when sold on public exchanges — a decision seen as a win for Ripple. However, the judge also found that XRP sales to institutional investors violated securities laws. Ripple was fined $125 million for those sales, but the fine has been stayed as both sides await the appeal.
Stuart Alderoty, Ripple’s chief legal officer, also commented on the appeal, calling it “disappointing, but not surprising.” He noted that the company is considering a cross-appeal, stating, “The SEC’s lawsuit has been irrational and misguided from the start. We’re ready to prove that yet again in the appellate court.”
Extended Legal Battle Anticipated
The timeline for a ruling from the U.S. Court of Appeals for the Second Circuit could extend until at least January 2026, according to lawyer Fred Rispoli, who shared his analysis on X. He explained that both the SEC and Ripple are likely to file their briefs early next year, with responses due by March 2025. Oral arguments are expected in September or October of 2025.
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Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
