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According to Ripple’s chief legal officer, the SEC will continue with its appeal of a judgment in the civil case despite Chair Gary Gensler stepping down in six days.
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Though party leadership at the US Securities and Exchange Commission (SEC) will change hands on Jan. 20, the regulator appeared to be moving forward with its current lineup of enforcement cases in court.
In a Jan. 14 X post, Ripple chief legal officer Stuart Alderoty said the SEC would not be postponing its filing of a brief as part of the commission’s appeal of a judgment against the blockchain firm. In August, a judge found Ripple liable for $125 million as part of the SEC’s case, alleging the firm used XRP as an unregistered security to raise funds.
“What a waste of time and taxpayer dollars,” said Alderoty. “Nevertheless, we are confident in our position on appeal and look forward to working with new SEC leadership to resolve this matter.”
Ripple CLO’s statement on SEC appeal in the civil case. Source: Stuart Alderoty
Ripple CEO Brad Garlinghouse echoed Alderoty’s statement, hinting that the SEC’s approach to crypto enforcement could change after President-elect Donald Trump’s inauguration on Jan. 20.
One of Trump’s campaign promises was to fire Gary Gensler in response to criticism of the SEC chair from many in the crypto industry. Gensler will be resigning on Jan. 20.
Related: XRP price eyes 60% gain ahead of Gary Gensler’s SEC exit
The civil case against Ripple, filed in December 2020 during Trump’s first term under his pick of SEC Chair Jay Clayton, will be going to an appellate court after the August 2024 decision. The SEC appealed a decision in which a federal judge ruled the XRP token did not necessarily qualify as a security, while Alderoty said Ripple’s appeal would not include that aspect of the judgment.
It’s unclear whether the next head of the SEC — Trump said he would nominate former commissioner Paul Atkins to the role, but he would still be subject to a vote in the Senate — will continue the regulator’s case against Ripple.
Alderoty personally donated more than $300,000 to fundraising and political action committees (PACs) supporting Trump.
Ripple contributed $45 million to the Fairshake PAC, a committee that spent more than $100 million on media buys to support “pro-crypto” candidates in the 2024 election cycle. After Nov. 5, the blockchain firm announced another $25 million donation to the PAC for the 2026 midterms.
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This article first appeared at Cointelegraph.com News
