- SEC no longer pursuing claims against Ripple’s CEO Brad Garlinghouse and Executive Chairman Chris Larsen.
- XRP price sees an approximate 4.1% surge, reaching $0.51 post the announcement.
A Notable Victory for Ripple
The blockchain and crypto sector received a jolt of optimism as the U.S. Securities and Exchange Commission (SEC) made a pivotal decision. The regulatory body chose not to continue with claims that Ripple‘s CEO, Brad Garlinghouse, and Executive Chairman, Chris Larsen, were complicit in the company’s alleged violations of federal securities laws linked to XRP transactions.
The SEC dropped charges against Ripple executives. The XRP price exploded by 8% to $0.528! It's not a settlement yet, but the SEC has lost again!
Ripple 3 SEC 0 🚀🚀🚀 pic.twitter.com/SiuIGUBDnY
— Collin Brown (@CollinBrownXRP) October 20, 2023
This development effectively cancels the trial that was slated for next year, further tilting the balance in favor of Ripple in this longstanding litigation.
Ripple Executives: In the Clear
Thursday’s formal documentation revealed that both parties have mutually agreed to dismiss the aiding and abetting charges against the two executives with finality, ensuring that these particular accusations cannot be resurrected. However, the SEC’s pursuit of its primary claims against Ripple remains intact.
Garlinghouse commented on this development, highlighting the unjust nature of the allegations:
“For nearly three years, Chris and I have been the subject of baseless allegations from a rogue regulator with a political agenda.”
Furthermore, Ripple had previously tasted victory in July when the presiding judge ruled in its favor regarding the distribution of XRP to retail investors via exchanges. The spotlight now remains on the SEC and Ripple’s discussions about the company’s sales of XRP directly to institutional investors – an area where the regulatory body and the blockchain company haven’t seen eye to eye.
Implications for the Crypto Realm
This lawsuit is emblematic of the broader tussle between the SEC and the crypto sphere, specifically surrounding the definition of what constitutes a security. SEC Chair, Gary Gensler, has advocated for most cryptocurrencies to fall under the ambit of securities, a stance which has been repeatedly challenged in U.S. courts.
With legislative clarity on crypto still a distant reality from Congress, these courtroom dramas are poised to shape the U.S.’ stance on digital assets for the foreseeable future. Ripple, in response to the ongoing scrutiny, has mentioned its shifting focus to markets outside the U.S., now catering to almost 90% of its business there.
As the regulatory dance continues, Ripple and its supporters see this latest turn of events as a testament to the resilience and legitimacy of the company and the broader potential of blockchain technology.