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SEC Dismisses Allegations Against Ripple Executives

2 mins
Updated by Kyle Baird
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In Brief

  • SEC seeks dismissal of its lawsuit against Ripple executives, following a July ruling that favored Ripple by not classifying XRP sales as a security.
  • Ripple's Chief Legal Officer calls the move a "surrender," not a settlement, hinting at potential impacts on the broader crypto regulatory framework.
  • XRP price reacts positively to the news, marking a significant milestone towards a resolution between SEC and Ripple, setting a regulatory precedent.
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The United States Securities and Exchange Commission (SEC) has moved to dismiss its high-profile lawsuit against Ripple CEO Brad Garlinghouse and co-founder Chris Larsen.

The request follows a US judge’s denial of the SEC’s appeal from a July ruling favoring Ripple.

SEC Drops Lawsuit Against Ripple Executives

The legal maneuver began in 2020 when the SEC accused Ripple of gathering over $1.3 billion through an unauthorized digital asset securities offering. However, a landmark ruling in July declared that sales of Ripple’s XRP to the general public were not a security.

This latest development by the SEC to seek a dismissal signifies a major departure from its initial stance. Ripple’s Chief Legal Officer, Stuart Alderoty, said the agency’s move to drop the lawsuit was not a settlement but a “surrender.” This has resonated well with the industry as it may potentially impact the broader regulatory framework surrounding cryptocurrencies.

Ripple CEO Brad Garlinghouse emphasized being,

“Targeted by the SEC in a ruthless attempt to personally ruin [him] and the company so many have worked hard to build for over a decade.”

Still, he celebrated “another win” and condemned the SEC for,

“Repeatedly [keeping] its eye off the ball while secretly meeting with the likes of Sam Bankman-Fried.”

The effects of this legal shift were felt in the crypto market. XRP’s price experienced a noticeable uptick of over 6%. Although it slightly retreated from its highs, the positive market response underscores the significant implications of this legal turnaround.

Read more: Why a $1,896 Target for Ripple’s XRP Is an Outrageous Lie

Ripple CEO Brad Garlinghouse: XRP Price Performance
XRP Price Performance. Source: TradingView

Following the dismissal of the lawsuit against Ripple CEO Brad Garlinghouse and Chris Larsen, the SEC and Ripple will engage in further discussions. The goal is to outline a potential briefing schedule on suitable remedies against Ripple. This move towards a resolution is a win for Ripple and sets a precedent for crypto regulation in the US.

Top crypto platforms in the US | March 2024

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Bary Rahma
Bary Rahman, a talented journalist, graduated from New York University with a degree in Journalism. Skilled in SEO, she has worked with CNN, showcasing her investigative skills and storytelling abilities. In addition to her journalistic accomplishments, Bary has contributed her expertise as a content writer for Binance, crafting insightful articles on the dynamic crypto industry. Her unique fusion of journalism and SEO makes her a versatile and highly respected figure in the industry.
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