SEC Drops Lawsuit Against Ripple Executives
The United States Securities and Exchange Commission (SEC) has decided to dismiss its lawsuit against Ripple CEO Brad Garlinghouse and co-founder Chris Larsen. This comes after the SEC’s appeal was denied by a US judge in July, who ruled in favor of Ripple.
In 2020, the SEC accused Ripple of conducting an unauthorized digital asset securities offering that raised over $1.3 billion. However, the landmark ruling in July determined that the sales of Ripple’s XRP to the general public did not qualify as securities.
The SEC’s decision to seek a dismissal signifies a significant shift from its original stance and has been seen as a “surrender” by Ripple’s Chief Legal Officer. This development could have broader implications for the regulatory framework surrounding cryptocurrencies.
Ripple CEO’s Response
Ripple CEO Brad Garlinghouse expressed his relief at the dismissal but criticized the SEC for its actions. He believes that the agency targeted him and the company in an attempt to ruin their reputation. Garlinghouse also accused the SEC of engaging with individuals like Sam Bankman-Fried while neglecting its responsibilities.
Market Impact
The crypto market reacted positively to this legal shift, with XRP experiencing a notable increase in price. Although it slightly retreated from its highs, this response highlights the significance of the SEC’s dismissal.
Hot Take: A Win for Ripple and Crypto Regulation
With the lawsuit against Ripple executives dismissed, further discussions between Ripple and the SEC will take place. The goal is to establish a briefing schedule for potential remedies against Ripple. This resolution is considered a victory for Ripple and could set a precedent for crypto regulation in the United States.
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