SEC Drops Charges Against Ripple CEO and Co-founder
The US Securities and Exchange Commission (SEC) has dismissed all charges against Ripple’s CEO, Brad Garlinghouse, and co-founder Chris Larson. The SEC had accused the executives of violating US securities laws in its case against Ripple Labs. However, in a letter to Judge Analisa Torres, the SEC stated that it was dropping the claims against the two individuals.
SEC Retreats in Ripple Case
The SEC informed the court that it was dismissing the claims against Garlinghouse and Larson. The agency also stated that the claim accusing the executives of violating securities laws with regard to XRP’s institutional sale would be dismissed as well. This dismissal eliminates the need for a scheduled trial on this particular claim.
Ripple Appears to be Receiving The Right Outcomes
In December 2020, the SEC filed a lawsuit against Ripple, alleging that the company had conducted an unregistered securities offering by selling $XRP. However, in July, Judge Torres ruled that XRP sales on public exchanges did not constitute an unregistered securities offering. The SEC’s request to appeal this ruling was rejected by the judge. In response to the dismissal of charges, CEO Brad Garlinghouse described it as a “surrender” by the SEC and criticized the agency for pursuing baseless allegations.
Caution is Still To Be Exercised
Kathrine Kirkpatrick, chief legal officer for Cboe Digital, suggested that the SEC may have dropped the charges against Garlinghouse and Larson as a legal tactic. She explained that this would allow the agency to proceed with its appeal of the Ripple decision sooner rather than waiting until after the conclusion of a trial in late spring.
Hot Take: Ripple Executives Cleared of Charges in SEC Case
The US SEC has dropped all charges against Ripple’s CEO, Brad Garlinghouse, and co-founder Chris Larson. This development comes after a long legal battle between Ripple Labs and the SEC. The dismissal of charges is seen as a victory for Ripple, as it clears the executives of any wrongdoing. However, caution is still advised as the SEC may have dropped the charges as part of a legal strategy. Despite this, Ripple’s CEO and co-founder have expressed relief and called for the closure of this chapter in their fight against what they believe to be baseless allegations.
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