Regulation
US SEC to Appeal XRP Secondary Sales In Ripple Lawsuit, Says Ex-SEC
Former SEC official Marc Fagel has indicated that the U.S. Securities and Exchange Commission (SEC) may appeal the court ruling regarding secondary sales of XRP. This follows a landmark decision which found that primary sales of XRP were not securities. However, Fagel highlighted that the Ripple case did not address secondary market sales, which the SEC might now target.
Ex-SEC Marc Fagel Predicts SEC Appeal in Ripple XRP Case
According to Marc Fagel, the SEC is likely to appeal the decision on the secondary sales of XRP. He emphasized that the previous Ripple court ruling explicitly excluded these sales from its verdict, thus opening a window for the SEC to readdress this issue.
The former SEC official emphasized,
”I’m just saying they’re not foreclosed by the Ripple decision from bringing a case against another entity selling XRP as a security”
Fagel’s commentary sheds light on potential future actions by the SEC, which remains vigilant in interpreting what constitutes security under its jurisdiction.
In response, Lawyer Bill Morgan questioned the rationale behind treating the Bitnomial XRP futures as security futures contracts. He pointed out the inconsistency in regulatory enforcement, especially when comparing XRP to similar cases with Ethereum (ETH), where the SEC had previously shown no objections to the futures contracts.
Morgan expressed frustrations, stating,
“I cannot abide such arbitrary enforcement. No wonder the crypto market is so distorted towards Bitcoin and Ethereum.”
Legal Challenges and Industry Reactions
In addition, Ripple CEO Brad Garlinghouse has criticized the SEC’s persistent stance that XRP is a security despite court rulings suggesting otherwise. His criticisms underscore a broader industry frustration over what many see as arbitrary and overreaching regulatory actions.
Garlinghouse’s comments came after the SEC was perceived as disregarding a judicial decision during its ongoing litigation with the crypto derivatives exchange Bitnomial. In support, Brad promised Ripple would follow up on the developments to hold the commission accountable.
Moreover, the Bitnomial case itself has become a significant point of contention. The exchange has argued that XRP futures should be regulated by the Commodity Futures Trading Commission (CFTC), not the SEC. Concurrently, the exchange advocates that XRP is not a security and should not be subjected to such stringent securities laws.
These developments come amid Ripple’s cross-appeal in the ongoing legal battle with the US Securities and Exchange Commission (SEC). This strategic legal move by Ripple aims to address unresolved issues beyond the initial ruling that XRP is not a security. Specifically, the cross-appeal will tackle the broader implications of the SEC’s claims about XRP sales on various exchanges and other distributions, which the SEC had attempted to appeal earlier.
Ronny Mugendi
Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Senator Cynthia Lummis has issued a warning to the Federal Deposit Insurance Corporation (FDIC) regarding allegations of document destruction related to “Operation Choke Point 2.0” (OCP 2.0). Whistleblowers have accused the agency of withholding and destroying materials tied to the alleged anti-crypto campaign. This has intensified scrutiny over the Federal Deposit Insurance Corporation’s practices.
Senator Cynthia Lummis Demands FDIC Preserve Documents Tied To OCP 2.0
In a letter dated January 16, 2025, Senator Cynthia Lummis addressed FDIC Chair Marty Gruenberg, demanding immediate action to preserve all documents linked to OCP 2.0. The initiative allegedly involved a multi-agency effort to limit crypto businesses’ access to banking services.
The pro-crypto Lummis warned that any destruction of these documents or retaliation against whistleblowers could result in criminal referrals to the Department of Justice. She emphasized that obstructing Senate oversight is illegal and unacceptable. The letter also referenced whistleblower claims that staff access to these materials is being closely monitored to prevent disclosure.
Addressing, Marty Gruenberg, the FDIC Chair, pro-crypto Senator Cynthia Lummis added,
“This is illegal and unacceptable. You are directed to ensure your staff cease and desist destruction of all materials and end all retaliatory actions immediately.”
Moreover, this warning comes amid reports that Donald Trump’s advisory team, including Elon Musk, is considering eliminating the FDIC as part of a banking sector overhaul. The proposed changes include merging the FDIC, OCC, and Federal Reserve’s nonmonetary functions to streamline regulation. Advisors have also floated the idea of transferring deposit insurance responsibilities to the Treasury Department.
Whistleblower Allegations and FDIC Compliance Issues
Whistleblowers allege that FDIC management has taken steps to prevent the release of critical information tied to OCP 2.0. These efforts reportedly include threats of legal action against staff who speak out and deliberate attempts to destroy key documents.
The controversy extends to the wind-down of Signature Bank and Silvergate Bank, two institutions with strong ties to the crypto industry. These closures have been central to ongoing investigations into the broader crackdown on crypto businesses.
Notably, the pro-crypto Senator Cynthia Lummis recently probed the U.S. Marshals over their proposed plans to sell seized Bitcoin. Lummis flagged concerns about the timing of the sale, citing its contradiction with President-elect Donald Trump’s Bitcoin Reserve agenda.
Scott Bessent Opposes CBDC Amid Crypto Debate
Meanwhile, Scott Bessent, President Donald Trump’s Treasury pick, has voiced opposition to the creation of a U.S. central bank digital currency (CBDC). In a recent Senate hearing, Bessent argued that the U.S. dollar already provides secure investment alternatives, making a CBDC unnecessary.
President @realDonaldTrump’s nominee for Treasury Secretary, Scott Bessent: “On CBDC’s, I see no reason for the U.S. to have a central bank digital currency.”
Agreed. Now let’s make sure it’s in law. pic.twitter.com/HaVD9Wjlkc
— Tom Emmer (@GOPMajorityWhip) January 16, 2025
Bessent’s stance aligns with Trump’s broader support for Bitcoin and skepticism of foreign CBDCs. He emphasized that Bitcoin mining safeguards against other nations’ adoption of centralized digital currencies. This reinforces Trump’s pro-crypto policies and highlights the administration’s preference for decentralized financial systems.
Nonetheless, most recently, Trump’s Treasury nominee Scott Bessent faced scrutiny from Senator Elizabeth Warren before his Senate Finance Committee confirmation hearing. Warren’s 31-page letter questions Bessent’s views on crypto regulation, including the potential authority of OFAC over stablecoins to combat risks like money laundering.
Ronny Mugendi
Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Ripple’s Chief Legal Officer (CLO), Stuart Alderoty, has strongly refuted recent rumors regarding the company and its executives. The rumors suggested that former President Donald Trump criticized Ripple for alleged financial support of Kamala Harris during a past election. Alderoty dismissed the claims as baseless and entirely fabricated, taking to Twitter to call out the reports as “pure fiction.”
Ripple CLO Refutes Claims of Political Allegations
Rumors have started to surface following a report made by Unchained, which stated that insiders said that Ripple had a conversation with Trump during which he allegedly bashed the company. In the report, Trump claimed that Ripple did not support his administration at a crucial time and highlighted that Chris Larsen, the co-founder of Ripple, had donated to PACs backing Kamala Harris.
The report further suggested that Ripple may have influenced another rumor published by the New York Post. The rumor claimed Trump was open to including non-Bitcoin, American cryptocurrencies, such as XRP, in a national reserve. XRP, Ripple’s native token, experienced a significant price surge following the report, reaching a seven-year high of $3.40.
Ripple’s chief legal officer, Stuart Alderoty quickly fired back at the allegations on social media and questioned the origins of the information from the unnamed sources. “The rumors published by this third-tier crypto rag are pure fiction. Completely made up,” Alderoty wrote on X.
John Deaton Criticizes Speculative Reporting
Like Ripple CLO, Prominent attorney John Deaton, who has been a vocal figure in the XRP community, also criticized the speculative reporting. Deaton questioned the reliability of unnamed sources and emphasized the importance of evidence-based claims.
As Deaton took to X to express his opinions he wrote,
” Let me get this straight, a person who was not at the meeting told another person that they were guessing what may have been said at the meeting?” This is why we have rules of evidence in Court.”
Deaton also pointed to the dangers of “tribalism” within the crypto sector, which is often characterized by groups that try to spread fear, uncertainty, and doubt (FUD) about other projects. According to him, the recent market performance of XRP which has been performing better than Bitcoin among other cryptocurrencies was likely to raise eyebrows.
XRP Price Hits 7 Year High Amid Controversy
The speculation was made at the same time of the unprecedented increase of XRP usage having hit more than 2,365 $100K transactions. Concurrently, XRP price has increased by more than 10% in the last 24 hours hitting a 7 year high due to speculations that the digital asset will be added to a US strategic digital assets reserve.
Other publications, including the New York Times, revealed that Ripple’s CEO, Brad Garlinghouse, had urged Trump to consider expanding such a reserve to include other cryptocurrencies besides Bitcoins. Despite these claims, no report could establish whether Trump had accepted the proposition or not.
Ripple’s representative, Susan Hendrick, has confirmed that Garlinghouse did reach out to the former president, but she denied that Ripple was behind the rumors of Trump supporting XRP. ‘All those allegations are lies,’ she told Unchained when confronted with the allegations.
The controversy arises at a time when Ripple is still in a legal tussle with the U.S Securities and Exchange Commission (SEC). The SEC recently filed an appeal of a 2023 decision by US District Judge Analisa Torres which found that XRP sales on cryptocurrency trading platforms did not constitute securities transactions.
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
CryptoCom has been granted a license for the Markets in Crypto Assets (MiCA). By this approval, the company is now ready to work under the new European Union crypto regulation. CryptoCom becomes one of the first major crypto firms to secure this provisional licence which allows for the firm to operate across the 27 member states of the EU.
CryptoCom Becomes First Major Crypto Firm to Secure Provisional MiCA Licence
In a recent blog post, CryptoCom announced to have received an in-principle MiCA licence. This provisional approval now allows the company to offer its crypto services across the EU on the back of an efficient framework. The MiCA regime provides clearer definitions and more certainty in the crypto sector.
The new regulatory framework enables authorized firms to provide their services across the whole of the EU. This does away with the need of having several licenses in each member state. CryptoCom’s approval is a significant development in its European expansion plan.
However, the regulation under Markets in Crypto Assets (MiCA) and the Transfer of Funds Regulation (TFR) Travel Rule adopted on December 30, 2024, have been misinterpreted. Consequently, recently Circle’s Policy Head, Patrick Hansen, clarified these misconceptions, providing key insights.
Europe’s First Comprehensive Crypto Regulation
MiCA establishes clear guidelines for businesses operating within the EU, ensuring a structured regulatory framework. This particular crypto regulation requires that companies meet certain standards on issues of reporting, AML, and consumer protection.
The exchange’s adherence to MiCA regulations demonstrates its commitment to responsible growth. The company has consistently advocated for robust regulatory structures to boost confidence in the crypto sector.
Although CryptoCom did not specify which regulator issued the approval, its European headquarters in Paris suggests involvement from French authorities. France has been proactive in implementing MiCA rules, making it a hub for crypto businesses.
Other firms are also working to secure MiCA licenses as member states roll out the framework. For instance, MoonPay and Boerse Stuttgart have already received similar approvals.
MiCA Licence Impact
With the in-principle MiCA licence, CryptoCom can offer its services across all EU member states. The approval allows the company to operate under a unified regulatory framework, reducing compliance complexities.
CryptoCom’s President and COO, Eric Anziani said that the company fully supports MiCA regulations. He noted that this was going to improve confidence, transparency and clarity in the crypto space.
CryptoCom’s COO added,
“We have always been fully supportive of MiCA and strongly believe it will bring clarity, transparency, and establish a more streamlined sentiment towards the regulation of our industry across the EU.”
Ronny Mugendi
Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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