In a recent tweet, prominent attorney Fred Rispoli leveled strong accusation against the U.S. Securities and Exchange Commission (SEC), calling its actions “next-level government corruption.” The accusations come in the context of the ongoing legal battle between Ripple and the SEC, which centers on whether XRP, Ripple’s native cryptocurrency, constitutes a security.
This is next level government corruption. It’s the kind of behavior that destroys any hope I had of SEC coming to its senses under the current regime (admittedly low). There is no hope without substantial change. https://t.co/VU1qV1bpzz
— Fred Rispoli (@freddyriz) October 11, 2024
Pro-Ripple Lawyer Slams SEC
Rispoli highlighted recent revelations involving the SEC’s actions in another case with cryptocurrency firm Bitnomial. According to a complaint, the SEC shared summary judgement briefs from its high-profile case against Ripple with Bitnomial in August 2024. The shared briefs focused on whether XRP sales were considered an “investment contract,” a key argument the SEC has used to claim that XRP violated the Securities Act. However, the SEC allegedly failed to disclose to Bitnomial that the district court has rejected its argument in the XRP case, ruling that not all XRP sales constituted securities.
Rispoli, frustrated by these developments, expressed his disillusionment with the current regulatory landscape. “There is no hope without substantial change,” he stated, underscoring his concerns about the SEC’s integrity and its broader approach to cryptocurrency regulation.
The accusations add fuel to the already intense legal battle between Ripple and the SEC, a case that has drawn the attention of the entire crypto industry. XRP recently filed a cross-appeal, seeking to overturn a ruling that classified its “institutional sales” of XRP as securities, raising the stakes in what could be a landmark decision for the future of digital assets in the U.S.
With these latest accusations, the conflict between Ripple and the SEC is entering a new, politically charged phase, further complicating the regulatory outlook for cryptocurrencies.
Also Read: Ripple SEC Lawsuit: Lawyer Reflects on Cross-Appeal, XRP ETF, Election
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