Ripple Labs CEO Brad Garlinghouse has vowed to continue battling the U.S. Securities and Exchange Commission (SEC) after the regulator filed an appeal in its ongoing lawsuit against the company. In an October 2 post on X (formerly Twitter), Garlinghouse expressed his frustration with the SEC’s persistence, stating that the regulator “lost on everything that matters.”
Ripple’s Stance: XRP’s Status as a Non-Security
Garlinghouse emphasized that Ripple remains committed to fighting the appeal in court, stating, “We’ll fight in court for as long as we need.” He reiterated that XRP’s status as a non-security has already been established by the courts, calling the SEC’s appeal “misguided” and “infuriating.”
This appeal comes after a significant ruling in July 2023, when New York District Court Judge Analisa Torres declared that XRP is not a security when sold on public crypto exchanges. However, the judge also ruled that XRP sold to institutional investors should have adhered to securities laws, giving the SEC a partial victory. Ripple was fined $125 million for its institutional XRP sales, but the fine has been stayed as the appeal process moves forward.
Ripple’s Legal Team Responds to SEC Appeal
Ripple’s Chief Legal Officer, Stuart Alderoty, echoed Garlinghouse’s sentiments, calling the SEC’s appeal “disappointing, but not surprising.” He indicated that Ripple is considering a cross-appeal, further stating that the SEC’s lawsuit has been “irrational and misguided from the start.” Alderoty reaffirmed that Ripple is prepared to defend its position again in the appellate court.
A Lengthy Appeal Process
The appeal process is expected to stretch on for years. Fred Rispoli, a lawyer and founder of Hodl Law, shared a timeline on X, estimating that the Second Circuit appeals court may not deliver a ruling until early 2026. According to Rispoli, briefs from both the SEC and Ripple will likely be filed early in 2025, with responses due by March of that year. Oral arguments are anticipated by September or October 2025, leaving a potential ruling in early 2026.
Market Reaction and Ripple’s Future
XRP’s price has reacted negatively to the news, falling 10.2% over the last 24 hours to around $0.53. This decline underscores market concerns about the ongoing legal battle and its potential impact on Ripple and XRP’s future.
Despite the legal uncertainties, Garlinghouse and Ripple remain confident in their defense, underscoring that XRP’s status as a non-security is already “the law of the land.”
