XRP Lawsuit Could Reach US Supreme Court, Says Former SEC Official

Former chief of the SEC’s crypto litigation unit, Ladan Stewart, hinted at the possibility of a lawsuit involving companies like Ripple and Coinbase reaching the US Supreme Court to resolve key questions about the definition of securities within the crypto space. Stewart’s insights, shared during a panel at Columbia Business School, reflect the SEC’s regulatory stance and its implications for the crypto industry.

Stewart emphasized that the SEC is unlikely to back off from bringing regulatory cases in the crypto space, citing Judge Failla’s decision in the Coinbase case as providing comfort to the agency in its approach.

The panel discussion delved into broader implications of how digital assets are treated under US law, with ongoing disputes about whether tokens themselves are securities or if it is the manner of their sale that creates an investment contract.

Panelists expressed contrasting views, highlighting persistent areas of contention between the crypto industry and regulatory bodies. There were concerns raised about regulation by enforcement and the practical application of securities law in digital asset markets.

The discussion underscored the industry’s dilemma: how can crypto companies operate within unclear or impractical rules? Stewart’s concluding remarks acknowledged the civil yet charged nature of these discussions, showing ongoing debates that will shape the future of crypto regulation in the United States.

Ripple’s CEO and Chief Legal Officer have expressed firm commitment to battling the SEC over the status of XRP, with observations that the Supreme Court has historically decided against the SEC in various cases in recent years.