Ripple CEO criticises SEC over legal authority on XRP futures

Ripple (CRYPTO:XRP) CEO Brad Garlinghouse has intensified his 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 authority.

His comments followed the filing of a lawsuit by Bitnomial Exchange against the SEC, challenging the regulator’s oversight of XRP futures.

The case highlights the growing tensions between the cryptocurrency industry and the SEC over perceived regulatory overreach.

The lawsuit by Bitnomial argues that XRP futures fall under the jurisdiction of the Commodity Futures Trading Commission (CFTC) and not the SEC.

Bitnomial claimed, “The SEC is overreaching its statutory authority by asserting joint jurisdiction over XRP futures contracts, which are under the sole control of the CFTC.”

According to the exchange, the SEC’s actions interfere with innovation and exceed the agency’s legal mandate.

Garlinghouse expressed his frustration on social media, calling this move "a new low" for the SEC.

He added, “The SEC now believes it can operate above the law, ignoring a court’s ruling that XRP isn’t a security."

The Ripple CEO emphasized that Ripple would closely monitor the developments and consider its options for holding the SEC accountable.

Ripple has been engaged in a legal battle with the SEC since December 2020, when the agency accused the firm of conducting an unregistered securities offering by selling $1.3 billion worth of XRP.

In July 2023, Ripple secured a partial victory when a judge ruled that XRP sales on public exchanges were not securities, although sales to institutional investors could be classified as such.

The SEC has recently appealed this ruling, and Ripple has filed a cross-appeal, further intensifying the ongoing legal disputes between the SEC and the crypto industry.

At the time of writing, the XRP price was $0.5306.