Billionaire Elon Musk and Ripple CEO Brad Garlinghouse have united in a stand against the U.S. Securities and Exchange Commission (SEC), turning up the heat on Ripple’s ongoing legal struggle with the agency and its far-reaching effects on the crypto industry. This unexpected alliance comes at a pivotal time, especially following Donald Trump’s election victory, which could lead to significant changes within the SEC.
Musk, who has had his own share of run-ins with the SEC, recently described the agency as a weaponized institution doing political dirty work. His remarks struck a chord with Garlinghouse and the wider crypto community, particularly amid Ripple’s fight against allegations that it sold XRP as an unregulated security.
Musk’s comments followed a notable ruling from the Fifth Circuit Court, which denounced the SEC for exceeding its authority regarding Nasdaq’s diversity quota policy. The court found that the SEC acted unlawfully by backing a policy mandating corporate boards to meet identity-based diversity quotas or justify their inaction. This decision underscores that the SEC’s responsibility is to maintain a fair market, rather than enforce politically driven standards.
While this ruling primarily concerns stock markets, its implications resonate within the crypto sector. It strengthens Ripple’s case that the SEC is engaging in regulation by enforcement. This viewpoint is echoed by other industry leaders like Garlinghouse, Coinbase, and Binance, who have also faced legal challenges or scrutiny from the SEC in recent years.
Ripple’s legal saga, which began in 2020, has garnered significant attention in the crypto landscape. A pivotal moment arrived last year when a court ruled that XRP was not classified as a security when sold to the general public. Despite this progress, the case remains unresolved, and Ripple remains cautious, as the final ruling will have profound effects on both XRP and the entire crypto market.
Musk’s support for Garlinghouse is particularly significant as Ripple seeks to broaden its reach internationally. Despite the regulatory hurdles in the United States that have hampered XRP’s growth for the past seven years, the third-largest cryptocurrency has recently experienced a remarkable rise. This surge has been fueled by optimism surrounding potential crypto-friendly regulations following Trump’s victory, hinting at a potential turning point for XRP and the broader crypto market.
Recently, XRP has skyrocketed in value, tripling its price and hitting a high of $2.61 earlier this month. This dramatic rise in its market capitalization has seen the asset leap from $106 billion to $160 billion in just one month, signaling a growing interest in XRP and indicating continued expansion within the cryptocurrency space. At the time of writing, XRP was trading at $2.41, reflecting a healthy increase of 1.51% over the past 24 hours.
This newfound partnership between Musk and Garlinghouse paints a promising picture for XRP and raises hopes among investors that the tide may be turning in favor of the cryptocurrency.
