Ripple executives are expressing frustration over the U.S. Securities and Exchange Commission’s decision to proceed with its appeal in the ongoing legal battle, even as SEC Chair Gary Gensler prepares to step down on January 20.
Ripple’s Chief Legal Officer, Stuart Alderoty, criticized the SEC in a January 14 post on X (formerly Twitter), stating that the commission will file its appeal brief on schedule despite the upcoming leadership change. Alderoty called the move a “waste of time and taxpayer dollars,” but affirmed Ripple’s confidence in its position.
In August 2024, a federal court ruled Ripple liable for $125 million, finding that the company had used XRP as an unregistered security to raise funds. While Ripple is appealing this decision, the SEC is challenging the court’s determination that XRP does not inherently qualify as a security.
Ripple’s Response and Optimism About Leadership Change
Ripple CEO Brad Garlinghouse echoed Alderoty’s criticism, suggesting that the SEC’s approach to crypto regulation could shift under new leadership following President-elect Donald Trump’s inauguration on January 20. Trump had promised during his campaign to replace Gensler, citing widespread criticism from the crypto industry.
Trump has named former SEC commissioner Paul Atkins as his preferred choice for the next SEC chair. However, Atkins’ appointment will still require Senate confirmation, leaving the future of the SEC’s case against Ripple uncertain.
Background on Ripple’s Legal Battle
The SEC initially filed its case against Ripple in December 2020, during Trump’s first term under SEC Chair Jay Clayton. The litigation has been closely watched as a pivotal case for crypto regulation.
In August 2024, a federal judge ruled that XRP sales to institutional investors violated securities laws, while programmatic sales on secondary markets did not. The SEC’s appeal focuses on the latter part of the ruling, which could have broad implications for how digital assets are classified in the U.S.
Ripple’s legal strategy does not include appealing the judgment requiring the $125 million payment. Instead, the company is preparing for the appellate court to hear its arguments on the broader regulatory classification of XRP.
Political Contributions and Crypto Advocacy
Ripple has been actively involved in political advocacy, contributing $45 million to the Fairshake PAC, which supported pro-crypto candidates during the 2024 elections. Following the election, Ripple announced an additional $25 million contribution for the 2026 midterms. Alderoty himself donated over $300,000 to political action committees backing Trump, reflecting Ripple’s alignment with pro-crypto political efforts.
