Ripple CEO Says SEC is Dropping Appeal in Crypto Case

Ripple’s Garlinghouse Says SEC Dropped Landmark Crypto Case

Ripple Chief Executive Officer Brad Garlinghouse said the US Securities and Exchange Commission case against the crypto company has ended, the latest of several enforcement actions that have been abandoned during the early weeks of President Donald Trump’s administration.

“This provides a lot of certainty for Ripple,” Garlinghouse said in an interview Wednesday on Bloomberg Television. He estimated that the San Francisco-based blockchain infrastructure company has spent more than $150 million to defend itself.

A spokesperson for the SEC declined to comment.

A part of the litigation between Ripple and the SEC is still ongoing. In 2023, Ripple had appealed a part of a ruling that found that some of the historical sales of XRP to institutional investors should have been registered with the agency. A $125 million fine, currently in escrow, hangs in the balance, and Ripple will now decide whether it wants to continue to pursue its appeal or pay the fine, Stuart Alderoty, chief legal officer of Ripple, said in a separate interview.

“We are just taking it under advisement at this point,” Alderoty said.

Law Firm in Trump’s Crosshairs Fired by White-Collar Client

Paul Weiss, a large law firm that President Trump recently targeted with an executive order, has been fired by a prominent client facing foreign bribery charges over concerns he could be negatively impacted if he continues to retain the firm.

Steven Schwartz, the former chief legal officer of Teaneck, N.J.-based Cognizant Technology Solutions, dropped Paul Weiss in response to Trump’s order, the firm said Wednesday in a filing in federal court in New Jersey asking for permission to withdraw from the case.

Implications of the SEC’s Stance that Meme Coins are not Securities

In this statement, the SEC staff took the position that typical meme coins — a category of crypto assets inspired by internet memes, pop culture, or trending jokes — do not constitute “securities” under federal law.

In the view of the Division, transactions in these meme coins need not be registered under the Securities Act of 1933, nor exempt from registration because they do not involve an “offer and sale” of securities.

This effectively signals a hands-off regulatory approach for genuine meme coins, while cautioning that investors in such tokens will not be protected by federal securities laws if the tokens fail or lose value.

The staff’s stance aligns with recent remarks by Commissioner Hester Peirce — who noted that many meme coins are likely not securities — and reflects the SEC’s effort to clarify how traditional securities law definitions apply in the rapidly evolving crypto market.

Big Changes are Already Underway at the SEC

At the same time, however, I share the concerns of the academics on the Shadow SEC. Our financial markets here in the U.S. are so widely respected around the world precisely because there has been an attentive and effective cop on the beat. There is every reason to be worried that even a well-intentioned agency subject to staffing and budget cuts see its effectiveness diminished, to the potential detriment of both investors and those seeking capital formation.

I am particularly concerned about the agency’s revised approach to crypto currency. I fear that the whole digital asset circus is going to end in some colossal scandal or crash, like FTX on steroids.

I recognize that a good case could be made that I am overreacting. From time to time over the years, the SEC has faced various budget challenges and other bureaucratic threats. Changes in policy priorities between Presidential administrations is a feature of the agency’s existence, not a bug. The agency will continue to pursue enforcement actions. The financial markets are not facing any direct existential threats.

All of that said, it is definitely the case that the next three and three-quarters years are going to be eventful. Strap yourself in, because it is going to be a heck of a ride.

Former Indiana congressman can’t overturn insider trading conviction

A federal appeals court on Wednesday upheld the insider trading conviction of Stephen Buyer, a former U.S. representative for Indiana’s 4th Congressional District who was convicted over profiting $350,000 from illegal telecommunication stock purchases based on inside information after he left office.

A three-judge panel for the Second Circuit court of appeals rejected Buyer’s appeal of his conviction, ruling in a summary order that he failed to timely object to the admission of challenged evidence and thus did not preserve his objections for appeal.