SEC Appeals XRP Ruling and Enforcement Director Gurbir Grewal Resigns
The U.S. Securities and Exchange Commission (SEC) has filed an appeal against the court's decision that XRP is not a security when traded on exchanges. Shortly before the appeal, the SEC announced the resignation of its Enforcement Director, Gurbir S. Grewal, sparking discussions about the future of the SEC vs. Ripple case.
Grewal's Involvement
Gurbir Grewal, who has led the SEC’s enforcement division since 2021, will officially step down on October 11. Known for his “regulation by enforcement” strategy, Grewal earned the nickname "Anti-Crypto Director" due to his aggressive stance on crypto violations, which often involved imposing hefty fines.
Under Grewal’s leadership, the SEC handled over 2,400 enforcement cases, resulting in more than $20 billion in penalties and compensations for crypto companies. In just three years, Grewal initiated over 100 enforcement actions against cryptocurrency firms.
One of the most talked-about cases under Grewal’s tenure is the ongoing legal battle between Ripple and the SEC. In 2020, the SEC charged Ripple for selling unregistered XRP securities. Years later, both parties secured a partial victory in the case.
The court ruled that Ripple was guilty of selling XRP to institutional investors, and the SEC proposed a $2 billion penalty. Ripple, however, countered with an offer of $10 million. The court ultimately decided that Ripple should pay a $125 million fine.
Before joining the SEC, Grewal served as New Jersey’s Attorney General from 2018 to 2021 and as a prosecutor for Bergen County, New Jersey’s most populous region. His background as a prosecutor proved valuable for the SEC during the Ripple case.
Impact of Grewal’s Resignation on the SEC’s Stance
With Grewal’s resignation, there is speculation about the direction of the SEC’s appeal in the Ripple case. Sanjay Wadhwa, Grewal’s deputy, is now acting director. Wadhwa, who has been with the SEC for over 20 years, is known for his firm stance on insider trading and market manipulation.
Wadhwa led efforts to clamp down on abusive American Depositary Receipt (ADR) practices, which resulted in over $430 million in fines.
It remains unclear who will be named as the new SEC enforcement head. Meanwhile, XRP investors are closely watching the appeal process, as its outcome could determine the future value of XRP.
After news of the appeal, XRP’s price dropped by 11.4% to $0.519, while trading volume surged by 16.8% to $3.2 billion.
