Ripple CEO Derides SEC, Says “Not So Great Week” For Regulator

Garlinghouse points out that the SEC is having a tough time in court.

In a tweet today, Ripple Chief Executive Officer Brad Garlinghouse took a swipe at the United States Securities and Exchange Commission (SEC).

Garlinghouse’s tweet comes as the SEC has taken several hits in the courts this week. Responding to a summary of Judge Analisa Torres’ latest ruling in the SEC case against Ripple provided by Stuart Alderoty, Ripple’s general counsel, Garlinghouse wrote:

“It’s only Tuesday, but shaping up to be a not-so-great week for the SEC (this ruling, Voyager, Grayscale).”

It’s only Tuesday, but shaping up to be a not-so-great week for the SEC (this ruling, Voyager, Grayscale) https://t.co/Cyoi41uNI8

— Brad Garlinghouse (@bgarlinghouse) March 8, 2023

As reported today, Judge Torres’ latest ruling on Daubert motions seeking to strike out expert testimony indicates that while the SEC’s arguments that XRP is a security have taken significant hits, the Ripple case appears to hold strong in the eyes of the court. Consequently, Alderoty let slip that the blockchain payments firm feels more confident about a favorable ruling on summary judgment motions. 

As highlighted by the Ripple chief, the SEC has had it tough this week in U.S. courts. For one, a U.S. bankruptcy court also overruled the agency’s objection to Binance.US’s bid for Voyager assets yesterday. In addition, Judges appeared to side with Grayscale in its appeal of the SEC’s rejection of its spot Bitcoin exchange-traded fund (ETF) application. As reported by Reuters, judges questioned why the same fraud protections were sufficient to approve futures-based ETFs but insufficient to approve Grayscale’s spot ETF application. 

While the SEC has ramped up its crypto enforcement actions in what appears to be an attempt to form the equivalent of a stranglehold on the nascent market, recent trends indicate that industry participants are getting their voices heard in court. The SEC case against Ripple over whether XRP is a security has run for over two years. Alderoty has suggested that the case could receive a summary judgment ruling by the end of the month.