$XRP Despite facing ongoing legal challenges from the U.S. Securities and Exchange Commission (SEC), Ripple is navigating a period of potential leadership transformation. On January 14, Ripple’s Chief Legal Officer, Stuart Alderotti, revealed that the SEC is moving forward with an appeal in the ongoing legal battle. This stems from a ruling in August, where Ripple was held accountable for $125 million, accused of raising funds by selling XRP as an unregistered security.
Alderotti criticized the SEC’s actions as a misuse of taxpayer funds, yet he expressed optimism regarding Ripple’s prospects on appeal. He anticipates working collaboratively with the SEC’s new leadership to resolve the issue. Ripple’s CEO, Brad Garlinghouse, echoed this sentiment, suggesting that the commission’s approach toward cryptocurrency regulation may evolve with the upcoming leadership change after President-elect Donald Trump’s inauguration on January 20. Trump has previously indicated plans to replace SEC Chairman Gary Gensler, and it’s expected that Gensler will step down that same day.
The legal case against Ripple, which began under SEC Chairman Jay Clayton during Trump’s first term, will now proceed to the appeals court following a ruling in August 2024. In that ruling, a federal judge determined that XRP does not automatically qualify as a security. Ripple’s appeal will focus on aspects of the case unrelated to the judge’s determination of XRP's classification. The future of the case remains uncertain, especially with Trump’s nomination of former SEC commissioner Paul Atkins to lead the commission, pending Senate approval.
Alderotti’s contributions to political causes supporting Trump’s stance on crypto are noteworthy, with over $300,000 donated to various fundraising committees. Ripple also made a significant $45 million donation to the Fairshake PAC, which has spent more than $100 million advocating for pro-crypto policies in the 2024 election cycle. Additionally, Ripple has committed another $25 million to super PACs for the 2026 midterms, reflecting the company’s continued push for favorable crypto legislation.
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