Ripple Executives Slam SEC Over Appeal Timing Amid Leadership Transition
Ripple’s top executives have voiced frustration with the U.S. Securities and Exchange Commission’s (SEC) decision to proceed with an appeal in their ongoing legal battle, despite the imminent resignation of SEC Chair Gary Gensler. The move comes just days before President-elect Donald Trump’s inauguration, which is expected to usher in significant leadership changes at the regulatory agency.
Ripple Criticizes SEC’s Timing in Legal Push
On January 14, Ripple’s Chief Legal Officer, Stuart Alderoty, criticized the SEC’s refusal to delay filing its appeal brief, calling it a “waste of time and taxpayer dollars.” The appeal stems from a 2024 ruling that found Ripple liable for $125 million in damages for allegedly using XRP as an unregistered security to raise funds.
“Nevertheless, we are confident in our position on appeal and look forward to working with new SEC leadership to resolve this matter,” Alderoty stated in a post on X (formerly Twitter). Ripple CEO Brad Garlinghouse echoed these sentiments, hinting at a possible shift in the SEC’s crypto enforcement strategy under new leadership.
A Legal Battle with High Stakes
The SEC initiated its case against Ripple in December 2020, during Donald Trump’s first term under SEC Chair Jay Clayton. The lawsuit accused Ripple of raising $1.3 billion through unregistered securities offerings via XRP. In August 2024, a federal judge ruled partially in Ripple’s favor, finding that XRP did not necessarily qualify as a security in certain circumstances. The SEC appealed this aspect of the ruling, while Ripple focused its appeal on other parts of the judgment.
As the case moves to an appellate court, it remains unclear whether the incoming SEC leadership will continue pursuing the lawsuit. Trump has announced plans to nominate former SEC Commissioner Paul Atkins as the next chair, pending Senate approval. Atkins, known for his market-friendly regulatory stance, could signal a shift in the agency’s approach to crypto enforcement.
Ripple’s Political Contributions and Industry Impact
Ripple has actively supported pro-crypto initiatives, contributing $45 million to the Fairshake PAC during the 2024 election cycle. The PAC, which spent over $100 million backing pro-crypto candidates, received an additional $25 million donation from Ripple for the 2026 midterms. Alderoty himself donated more than $300,000 to political committees supporting Trump.
These contributions reflect Ripple’s broader strategy to influence the regulatory landscape, particularly as Trump’s administration is expected to take a more favorable stance toward digital assets. One of Trump’s campaign promises was to dismiss Gensler, a move welcomed by many in the crypto industry who viewed the outgoing chair’s enforcement-heavy approach as stifling innovation.
The Road Ahead for Ripple and Crypto Regulation
The SEC’s ongoing case against Ripple represents a pivotal moment for the cryptocurrency industry. With a new administration set to take the reins, the outcome could signal a broader shift in how digital assets are regulated in the United States. Ripple, armed with strong political backing and a robust legal defense, remains determined to shape the future of crypto policy.
Why This Case Matters
Ripple’s battle with the SEC is more than a legal dispute—it’s a litmus test for the evolving relationship between regulators and the crypto industry. As new leadership takes over at the SEC, the case could reshape how digital assets are classified and governed. Ripple’s actions, alongside the incoming administration’s policies, will play a key role in determining the future trajectory of cryptocurrency regulation.