- SEC Enforcement Director resigned hours before the Ripple lawsuit appeal.
- There is now a huge uncertainty regarding the direction of the Ripple versus SEC case.
The US Securities and Exchange Commission (SEC) has filed to appeal a ruling that states XRP is not a security when traded on exchanges. Just before the appeal, the SEC announced the resignation of Enforcement Director Gurbir S. Grewal. This news has raised discussions about the future of the SEC vs. Ripple case.
Grewal’s Involvement in the SEC vs Ripple Case
Grewal served as the SEC Enforcement Director from 2021 and will officially leave the agency on October 11. Due to his “regulation by enforcement” strategy, Grewal was often referred to as an anti-crypto Director during his time at the SEC. His priorities were punishing offenders, adjusting fines, and ensuring that no one got away with breaking the SEC’s regulations.
Under Grewal’s leadership, the SEC handled over 2,400 enforcement cases, resulting in over $20 billion in disgorgements and penalties for crypto firms. In just three years, Grewal presided over 100 enforcement actions against crypto companies.
The ongoing legal battle between Ripple and the SEC is one of the most discussed cases under Gubir Grewal. In 2020, the SEC went after Ripple for selling unregistered XRP securities. Years later, Ripple and SEC scored a partial victory in the case.
The court ruled that Ripple was guilty of selling XRP to institutional investors, and the SEC demanded a $2 billion penalty. However, the blockchain company countered the proposal with $10 million.
Instead, the court ruled that Ripple should pay a $125 million penalty, as CNF noted earlier. However, Grewal filed an appeal, claiming that the district court’s decision on Ripple contradicted decades of precedent.
Before joining the SEC, Grewal was the Attorney General of New Jersey from 2018 to 2021. He also worked as the Prosecutor for Bergen County, New Jersey’s most populous county. His expertise as a seasoned prosecuting attorney gives the SEC some leverage in its fight against Ripple.
What Next for the SEC vs Ripple XRP Appeal After Grewal’s Resignation
Now that Grewal has penned his resignation, market participants wonder what will happen following the appeal.
Sanjay Wadhwa, the Enforcement Division’s deputy director, will now take over as acting director. Sam Waldon, the Enforcement Division’s Chief Counsel, will take over Wadhwa’s current position as Acting Deputy Director.
Wadhwa has worked with the SEC for over 20 years and has a track record of taking tough measures against insider trading and market manipulation. He spearheaded the effort to stop abusive American Depositary Receipt (ADR) practices, which resulted in fines exceeding $430 million. He also took down Galleon Management Founder Raj Rajaratnam and others connected to Wall Street’s largest hedge funds.
For now, it remains unclear who the SEC intends to promote as the agency’s permanent Enforcement Director. Regarding Ripple, XRP investors will be watching to see the SEC’s reaction to the case moving forward. The progression and, ultimately, the case’s conclusion is important for XRP’s future valuation.
At the time of writing, XRP’s price decreased by 11.4% in 24 hours to $0.519. However, the trading volume sustained a 16.8% surge within the same time frame to $3.2 billion.