The U.S. Securities and Exchange Commission (SEC) continues its enforcement action against Ripple, despite an impending leadership shakeup. On January 14, Ripple’s chief legal officer, Stuart Alderotti, announced that the SEC would not delay filing a brief to appeal a ruling involving the blockchain company. In August, a judge ruled that Ripple was liable for $125 million, accusing the company of using XRP as an unregistered security to raise money.
Alderotti criticized the SEC’s actions, calling them a “waste of taxpayer time and resources.” However, he expressed confidence in Ripple’s position on appeal and expected to work with the SEC’s new leadership to resolve the matter. Ripple CEO Brad Garlinghouse backed Alderotti’s statement, noting that the commission’s approach to crypto enforcement may change after President-elect Donald Trump’s inauguration on January 20. Trump has previously promised to fire SEC Chairman Gary Gensler, who is set to resign the same day. The civil case against Ripple, which began in December 2020 during Trump’s first term under SEC Chairman Jay Clayton, moves to the appeals court following an August 2024 ruling. The commission is appealing a ruling in which a federal judge ruled that the XRP token does not necessarily qualify as a security. Alderotti noted that Ripple’s appeal will not address those aspects of the ruling. It remains uncertain whether the next commission chair, whom Trump intends to nominate as former commissioner Paul Atkins, will continue the case against Ripple, pending Senate approval. Alderotti has personally contributed more than $300,000 to fundraising committees and political committees (PACs) that support Trump. Additionally, Ripple has donated $45 million to Fairshake PAC, which has spent more than $100 million on media campaigns supporting “pro-crypto” candidates in the 2024 election cycle.Following the November 5 election, Rebel announced an additional $25 million donation to a super PAC for the 2026 midterm elections.
