The SEC Drops Aiding and Abetting Charges Against Ripple Executives
The U.S. Securities and Exchange Commission (SEC) has decided to drop its aiding and abetting charges against Ripple’s top executives, Brad Garlinghouse and Chris Larsen. The charges were originally filed in 2020 as part of the SEC’s lawsuit alleging that Ripple had issued XRP as an unregistered security. However, in July, the courts ruled that Ripple’s sales of XRP were not securities transactions.
Ripple Calls the SEC’s Move a “Stunning Capitulation”
Ripple has described the SEC’s decision to drop the charges against its executives as a “stunning capitulation” by the US government. In a press release, Ripple criticized the SEC for targeting them instead of going after criminals involved in offshore exchanges. The company also pointed out that due to regulatory confusion caused by the SEC, 90% of its business is now conducted outside of the US.
Larsen: SEC’s Decision Vindicates Us Against Their Political Agenda
Chris Larsen, co-founder of Ripple, stated that the SEC’s decision to drop the charges legally vindicates them against the regulator’s political agenda to stifle crypto innovation in America. Larsen called it a “travesty” that they had to defend themselves from an attack that was flawed from the beginning. He raised questions about the origin and motivation of the lawsuit, suggesting it was an abuse by politically connected special interests.
XRP Price Rises Following News
Following the announcement of the dropped charges, XRP saw a 7% increase in price and is currently trading at $0.52.
Hot Take: Ripple Executives Cleared as SEC Drops Charges
The SEC’s decision to drop its aiding and abetting charges against Ripple CEO Brad Garlinghouse and co-founder Chris Larsen is a significant development in the legal battle between Ripple and the regulatory agency. This move comes after the courts ruled that Ripple’s sales of XRP were not securities transactions. Ripple has hailed the SEC’s decision as a “stunning capitulation” by the US government, while also criticizing the SEC for targeting them instead of focusing on criminals involved in offshore exchanges. The dropped charges are seen as a legal vindication for Garlinghouse and Larsen against what they perceive as a politically motivated attack by the regulator. This development may have positive implications for Ripple and its ongoing efforts to establish regulatory clarity for XRP.
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