Ripple Labs CEO Brad Garlinghouse is gearing up for another legal showdown with the United States Securities and Exchange Commission (SEC) after the regulator signaled its intent to appeal a significant court ruling in the long-running case against Ripple. In an Oct. 2 post on X (formerly Twitter), Garlinghouse did not mince words, expressing his frustration with the SEC’s persistence. “Somehow, they still haven’t gotten the message: they lost on everything that matters,” he wrote.
This renewed legal conflict stems from a July 2022 ruling by New York District Court Judge Analisa Torres, which dealt a blow to the SEC’s 2020 lawsuit accusing Ripple of selling unregistered securities through its XRP token. Judge Torres ruled that XRP, when sold on public crypto exchanges, was not a security, delivering a win for Ripple in a case that has been closely followed by the crypto industry. However, the ruling was not an outright victory for Ripple; the court did side with the SEC on one important point—XRP sales to institutional investors should have followed securities laws.
Ripple was fined $125 million for those institutional sales, but last month, the SEC agreed to delay enforcing the fine, hinting that an appeal was on the horizon. Now, the SEC has made its move, prompting Garlinghouse and Ripple’s legal team to prepare for yet another round in court. Ripple’s Chief Legal Officer Stuart Alderoty echoed Garlinghouse’s sentiment, calling the SEC’s decision to appeal “disappointing, but not surprising” in another post on X.
Ripple’s case has become a litmus test for the broader cryptocurrency market, with the court’s decision likely to have far-reaching consequences for how digital assets are classified under U.S. law. Despite Judge Torres’ ruling in favor of Ripple for public sales, the SEC’s partial win on institutional sales is now central to its appeal strategy.
According to Fred Rispoli, a legal expert and founder of Hodl Law, the appeals process could drag on for years. In a detailed timeline shared on X, Rispoli predicted that the Second Circuit Court of Appeals is unlikely to make a ruling before January 2026, with oral arguments potentially taking place in late 2025.
The ongoing legal uncertainty is weighing heavily on XRP’s market performance. In the last 24 hours, the cryptocurrency has plummeted by over 10%, currently trading around $0.53. This significant price drop underscores the volatility surrounding Ripple’s legal entanglements and the broader market’s sensitivity to regulatory developments.
Also Read: XRP Price Drops 11% After SEC Appeal – Ripple’s Legal Chief Slams ‘Embarrassing’ Lawsuit
As the SEC and Ripple brace for the next legal battle, the crypto community is left wondering how the outcome could reshape the future of digital assets. For now, Ripple’s leadership remains defiant, with Garlinghouse signaling a willingness to fight until the very end, confident that the SEC’s appeal will ultimately fail.
The stage is set for a protracted legal war, and the stakes couldn’t be higher—for Ripple, the SEC, and the entire cryptocurrency market.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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