SEC Drops All Charges Against Ripple’s CEO Brad Garlinghouse and Co-Founder Larsen in Ongoing XRP litigation
The Securities and Exchange Commission (SEC) of the United States has withdrawn all allegations against Ripple CEO Brad Garlinghouse and Executive Chairman Chris Larsen. The charges resulted from a 2020 lawsuit alleging that Ripple traded XRP tokens as unregistered securities.
The SEC’s decision to withdraw the charges comes after a string of legal setbacks for the regulator. A judge concluded in July 2023 that the SEC had not fully demonstrated why XRP could be considered a security.
The judge also granted Ripple access to internal SEC records that the regulator had been attempting to keep secret.
According to a recent court filing, both parties voluntarily agreed to dismiss the allegations against the Ripple executives with prejudice.
The SEC’s decision to drop the allegations is a significant victory for Ripple and the crypto sector as a whole, as these cannot be filled again.
Ripple CEO published a victory count with the SEC on X.com. He had a better day thanks to the 3-0 score.
The SEC, on the other hand, is still pursuing its case against Ripple, and the two sides agreed to meet and confer on a probable briefing timetable for the case’s pending issue.
As a result of the dismissal of the accusations, the SEC will no longer charge Ripple’s CEO Brad Garlinghouse or Executive Chairman Chris Larsen with aiding and abetting the company’s violation of federal securities laws in its XRP transactions.
The outcome of the Ripple case is likely to have an impact on other cryptocurrency cases that are now in the works. It is probable that the SEC may now be more cautious to charge cryptocurrency companies.
The removal of the fees is also a good thing for XRP holders. The price of XRP has risen in response to the news.
The Ripple case has piqued the interest of the cryptocurrency community. The case’s decision is viewed as a litmus test for the SEC’s jurisdiction to regulate cryptocurrencies. The decision by the SEC to drop the charges is a loss for the regulator, but it is also a success for the cryptocurrency industry.
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