SEC Retreats from Ripple Lawsuit: What You Need to Know
The long-standing legal battle between the United States Securities and Exchange Commission (SEC) and Ripple has come to an end, with the SEC dismissing its civil allegations against Ripple’s CEO Brad Garlinghouse and co-founder Chris Larsen. This marks a significant victory for Ripple.
SEC’s Capitulation
Ripple’s CEO, Brad Garlinghouse, stated that this is the company’s third win against the SEC, emphasizing that the regulator targeted them personally in an attempt to destroy their reputation and the company. Stuart Alderoty, Ripple’s chief legal officer, called the SEC’s retreat a surrender and not a settlement.
Legal expert Jeremy Hogan believes that this development makes a full settlement more likely, as the only remaining question is how much Ripple will pay the SEC.
What the Case Was About
The SEC initially filed a case against Ripple in December 2020, seeking over $2 billion in fines. The SEC claimed that every sale of XRP made by Ripple over eight years constituted securities sales. If successful, this would have had severe consequences for Ripple and its executives.
The price of XRP has seen a positive reaction to this news, with a 7.31% increase in the last 24 hours. However, it still holds a minor loss on its monthly chart.
Hot Take: Ripple Secures Victory as SEC Drops Charges
The dismissal of civil allegations against Ripple’s CEO and co-founder by the SEC marks a major triumph for the cryptocurrency company. After a lengthy legal battle, Ripple can now celebrate its third win against the regulator.
This turn of events also increases the likelihood of a full settlement between Ripple and the SEC. While the case is not completely resolved, the focus now shifts to determining the amount Ripple will pay to the SEC.
The price of XRP has responded positively to this news, experiencing a notable increase in value. This victory for Ripple could have significant implications for the future of cryptocurrencies and their regulation.
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