The legal battle between Ripple and the US Securities and Exchange Commission (SEC) is still ongoing. The lawsuit was initiated by the SEC in December 2020, accusing Ripple of violating securities laws by selling XRP to retail investors. In July, Ripple achieved a partial victory when a US court ruled that the sale of XRP did not constitute an offer of investment contracts. This decision positively impacted XRP’s price, which soared by over 70%. However, the SEC appealed the ruling in September, leading to ongoing uncertainty and a decline in XRP’s value.
Amidst the legal dispute, Ripple has hired prominent lawyers to represent the company and its CEO, Brad Garlinghouse. These include former Assistant United States Attorney Rahul Mukhi and Lauren Belive, who previously worked at the White House under President Barack Obama. Belive has been appointed as the Head of US Public Policy and Government at Ripple, responsible for leading the organization’s engagement in Washington and nationwide. The aim is to ensure that Ripple remains an influential voice in the conversation surrounding digital assets and regulation.
Gary Gensler, the Chairman of the SEC, recently participated in a congressional testimony where he criticized the digital asset sector and accused individuals and companies involved in the industry as “hucksters.” When questioned about the SEC’s legal battle with Ripple, Gensler refrained from providing specific details and simply acknowledged the ongoing status of the dispute. This is not the first time Gensler has avoided answering uncomfortable questions, as he previously declined to clarify whether the SEC considers Ethereum (ETH) a security or a commodity.