Ripple CEO Takes a Stand Against US SEC’s Security Claim in Bitnomial Case, Other Join the Debate
Ripple CEO Brad Garlinghouse has accused the U.S. Securities and Exchange Commission (SEC) of disregarding a court ruling that determined XRP is not a security, despite the SEC’s ongoing claims. This comes after the agency’s involvement in the Bitnomial case, where the crypto derivatives exchange challenged the SEC’s classification of XRP futures.
Ripple CEO on Bitnomial Case
Brad Garlinghouse expressed his frustration with the SEC’s actions in a post on social media, highlighting the agency’s apparent disregard for the court’s decision regarding XRP’s security status. He questioned the agency’s conduct, suggesting that it reflects a belief that it can operate outside the boundaries of the law.
Read Also: Ripple Pulls No Punches, Counters SEC Ruling With Cross-Appeal
Ripple CLO Stance
Ripple’s Chief Legal Officer, Stuart Alderoty, also weighed in on the SEC’s stance in the Bitnomial case, raising concerns about the legitimacy of a regulatory agency that ignores a court ruling. According to Alderoty, the SEC’s aggressive actions in the case raise questions about the agency’s credibility and adherence to constitutional principles.
The Bitnomial case centers on the SEC’s assertion that XRP futures are ‘security futures,’ subjecting them to additional regulations beyond those set by the Commodity Futures Trading Commission (CFTC). Bitnomial argued that XRP futures should fall under the jurisdiction of the CFTC alone, as XRP is not registered as a security. The exchange filed a complaint with the U.S. District Court for the Northern District of Illinois, contending that the SEC’s requirement for the company to register as a national securities exchange imposes an excessive regulatory burden.
In line with Ripple’s position, Bitnomial emphasized the conflict between the SEC’s stance and the court’s ruling that XRP is not a security. This legal challenge is the latest development in the ongoing dispute between the SEC and the crypto industry regarding the agency’s approach to regulating digital assets.
The Bitnomial case reflects the SEC’s ongoing efforts to regulate cryptocurrencies, despite its loss in the court battle with Ripple. The SEC’s persistence in classifying XRP as a security has faced widespread criticism from the crypto community.
Ripple Pro-XRP Attorney Stance
In addition to Ripple’s CEO, legal experts and Pro-XRP attorney Bill Morgan have accused the SEC of exceeding its authority and disregarding legal precedents. John Deaton, who represented XRP holders in the Ripple case, also criticized the SEC’s conduct, highlighting concerns about the agency’s regulatory practices and referencing a recent case where the SEC was sanctioned for misconduct.
Read Also: Expert Predicts Ripple RLUSD Stablecoin Launch Will Spark XRP to $10 Target
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