XRP Surges as SEC Drops Charges Against Ripple Executives
XRP experienced a significant surge of over 8% following the Securities and Exchange Commission’s (SEC) decision to drop charges against two top Ripple executives. In a surprising move, the SEC dismissed its lawsuit against Ripple CEO Brad Garlinghouse and co-founder Chris Larsen for their alleged involvement in the illegal sale of securities. Ripple hailed this decision as a “landmark surrender” and celebrated it as their third consecutive victory over the regulator.
Garlinghouse expressed his frustration with the SEC, stating that the agency unfairly targeted them while ignoring offshore exchanges involved in criminal activities. He emphasized that Ripple is a US-based company building a regulated business.
Today was an even better day.
Ripple: 3
SEC: 0In all seriousness, Chris and I (in a case involving no claims of fraud or misrepresentations) were targeted by the SEC in a ruthless attempt to personally ruin us and the company so many have worked hard to build for over a… https://t.co/YsQxewFnj9
— Brad Garlinghouse (@bgarlinghouse) October 19, 2023
XRP Records Biggest Single-Day Gain In Three Months
Following the news, XRP witnessed its largest single-day gain in three months. Although the token’s price slightly declined afterwards, it still traded at $5.185, representing a 7.3% increase in the past 24 hours. With a market cap of $27.6 billion, XRP currently holds the position of the world’s fifth-largest digital token.
Despite dropping charges against the executives, the SEC is not abandoning its case against Ripple entirely. The regulator plans to confer with the company regarding the pending issue of “Section 5 violations” related to Ripple’s Institutional Sales of XRP. Both parties have until November 9 to propose a schedule to the Court or seek a briefing schedule on a contested basis.
In July, Judge Analisa Torres ruled that while XRP is not considered a security when sold to the public, it qualifies as one when sold to institutional investors. The SEC initially brought the lawsuit against Ripple and its executives in December 2020, accusing them of selling unregistered securities and profiting over $1.3 billion.
The SEC’s strict approach towards the crypto industry this year has drawn criticism, with many accusing the agency of employing a regulation-by-enforcement strategy. The industry has argued that the SEC has overstepped its boundaries.
Hot Take: Ripple Celebrates Victories Over SEC
Ripple’s recent victories in court against the SEC have provided a significant boost for XRP and its supporters. With charges dropped against its CEO and co-founder, Ripple sees this as a pivotal moment in their ongoing battle with the regulator. While uncertainties remain due to pending issues in the case, this series of wins has given Ripple confidence in its position and regulatory compliance efforts. The crypto community eagerly awaits further developments as Ripple continues to defend itself and its business model against regulatory scrutiny.
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