Key Takeaways
- The Ripple Vs. SEC case remains ongoing despite rulings establishing that XRP retail sales did not constitute a security offering.
- The SEC’s new Chairman may drop enforcement actions initiated against crypto under Gary Gensler.
- Spot XRP ETF applications are pending responses from the SEC, with initial decisions expected by the end of January 2025.
The U.S. Securities and Exchange Commission (SEC) continues to play hardball under Gary Gensler as the regulator refuses to postpone the filing of its appeal against Ripple’s (XRP) landmark courtroom victory.
Ripple heavy hitters, CEO Brad Garlinghouse and Chief Legal Officer (CLO) Stuart Alderoty have called out the agency’s decision.
Ripple Vs. SEC
As per an X post from Alderoty, the SEC has declined to postpone its appeal filing against a recent judgment in favor of Ripple.
Ripple’s legal team had previously requested the SEC postpone its principal brief filing, which has a deadline of Jan. 15.
The civil case against Ripple, initially filed in December 2020, accused the firm of violating securities laws by selling XRP tokens.
In 2023, a judge ruled that XRP sales to retail investors did not constitute a securities offering but found institutional sales did.
This appears to be a final shot from outgoing SEC Chairman Gary Gensler, who has spent four years battling Ripple over whether or not the XRP token qualifies as a security.
Now, a pro-crypto government is set to take over Washington, including the SEC, which bodes well for the pending spot XRP exchange-traded fund (ETF) applications piling up on the SEC’s desk.
Furthermore, it’s unclear if the SEC will continue its case against Ripple or the dozen other enforcement cases against crypto when it comes under new management, though several u-turns are anticipated.
Gensler on Bitcoin
Speaking with CNBC’s “Squawk Box” on Jan. 14, Gensler reiterated his stance that crypto is “a highly speculative field” that has struggled to comply with numerous laws and regulations:
“[…] whether it’s any money laundering laws, sanctions laws, or in our case, securities laws. Now, Bitcoin’s not a security, but these 10,000 or 15,000 other tokens, the investing public has been hurt over the many years.”
He once again explained that he believes crypto markets operate mostly on sentiment, not fundamentals.
Fascinatingly on the subject of Bitcoin’s future as a store of value, he noted that “we at the SEC have never said it’s a security,” and then he espoused perhaps his most bullish comments on Bitcoin, stating:
“I think that Bitcoin is a highly speculative, volatile asset. But with 7 billion people around the globe, 7 billion people want to trade it just like we do have gold for 10,000 years. We have Bitcoin. It might be something else in the future as well.”
But when pressed on whether he owns or loves BTC, he is adamant he doesn’t and has “never owned it.”
Eddie is a gaming and crypto writer at CCN. Covering the often weird and wonderful world of Web3 with an adoring, but skeptical eye.
Prior to CCN, Eddie has spent the past seven years working his way through the crypto, finance, and technology industry. He began with PR and journalism with Bitcoin PR Buzz and BitcoinNews.com, eventually working his way to become a copywriter with a dozen firms, including the likes of Polkadot before returning to journalism in 2023.
Having studied Radio production and journalism at University in the UK, Eddie spent a few years making podcasts and presenting on a local London radio station as he built up his writing chops.
A lifelong skateboarder, Eddie can often be found at the skatepark or touring the streets looking for something new to try. That, or kicking back playing JRPGs on his original PSP.
