Ripple CEO Describes SEC Claims as “Utter Nonsense,” Says XRP Non-Security Status Isn’t Up For Trial

Ripple CEO says even though the court grants SEC’s appeal request, it will not change the fact that XRP is not a security and the matter is not up for trial.

Brad Garlinghouse, CEO at Ripple, has shared an important reminder regarding the SEC’s request to appeal Judge Analisa Torres’ ruling.

In a tweet yesterday, Garlinghouse said XRP is not a security, irrespective of whether the court approves the SEC appeal. He noted that the non-security status of XRP is not up for debate or trial.

Reminder – the request for appeal (even if granted) doesn’t change the fact that XRP is not a security. That’s not up for debate / trial. But the SEC continues to claim that Chris and I acted recklessly in believing that XRP is not a security. That’s utter nonsense. 1/2 https://t.co/pG7z0jsjlt

— Brad Garlinghouse (@bgarlinghouse) August 16, 2023

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Ripple Opposes SEC’s Interlocutory Appeal Request

Notably, Garlinghouse made the remark hours after Ripple filed its opposition to the SEC’s request for an interlocutory appeal. Ripple opposed the request, stating that no “extraordinary circumstance” justifies the certification for an interlocutory appeal.

Last week, the SEC requested permission to file an interlocutory appeal to Judge Torres’ ruling. As reported, the court ruled that both transactions do not constitute investment contracts. The court also ruled that XRP itself is not a security.

However, the SEC only chose to appeal the ruling on Ripple’s programmatic sales and other distributions while leaving out the non-security status of XRP.

Garlinghouse Says SEC Claims Are Utter Nonsense

Despite not challenging the non-security status of XRP directly, the SEC still alleges that Garlinghouse and Ripple’s chairman Chris Larsen were reckless in believing that XRP is not a security.

Reacting, Garlinghouse described the claim as “utter nonsense.” He said the court had already stated that the SEC would be put to its proof at trial regarding its case against the company’s execs.

He expressed confidence that Ripple would still prove the commission wrong again “as a matter of fact and law.”

It bears mentioning that Judge Torres recently scheduled the trial for Q2 2024. Meanwhile, the court gave a deadline of August 24 for the parties to submit blackout dates for the trial.