A petition on Change.org, started by XRP advocate Thomas Hodge, is calling on U.S. Securities and Exchange Commission (SEC) Chairman-Designate Gary Gensler to drop the lawsuit against Ripple Labs and its executives and “end the war on XRP.” The petition also demands “a thorough investigation of the matters that led to the last-minute lawsuit against Ripple, filed on the last day in office by former SEC Chairman Jay Clayton.”
Background: The SEC vs. Ripple Case
In December 2020, the SEC sued Ripple Labs, CEO Brad Garlinghouse, and co-founder Christian Larsen, alleging they sold $1.3 billion worth of XRP tokens without registering them as securities. The lawsuit was filed just hours before Chairman Jay Clayton left office. The petition alleges that Clayton and former SEC Division of Corporation Finance Director William Hinman had close ties to financial interests in Bitcoin, Ether, and Chinese fintech firms, suggesting a conflict of interest.
Key Demands: End Lawsuit, Create Clear Rules
The petition specifically asks Gensler to: “immediately upon confirmation, closely examine the SEC’s allegations and the harm caused to XRP holders”; “publicly commit to sitting down with XRP and other digital asset holders to understand what it truly means to protect investors”; “end the Ripple lawsuit and stop making cryptocurrency rules through lawsuits, instead working with Congress for proper rulemaking with public input.” The petition further requests the SEC Inspector General to investigate whether Clayton’s last-minute suit improperly served interests other than retail investors.
Recent Development: Ripple Wins Discovery
Notably, Ripple recently secured a key discovery order from the court, compelling the SEC to produce internal records about whether XRP should be treated similarly to Bitcoin and Ether—both currently classified as non-securities. This could bolster Ripple’s defense and fuel criticism of the SEC’s selective enforcement approach.
As of now, the petition has gathered tens of thousands of signatures. Gensler has not publicly commented, but analysts say his handling of the Ripple case will define the future of U.S. crypto regulation.