An important legal victory for Ripple in the United States. On October 19, 2023, the Security and Exchange Commission (SEC) dropped legal proceedings against two executives of Ripple (whose token is XRP). However, the American financial watchdog is not totally defeated. Ripple is still being targeted for the sale of XRP to institutional investors.
SEC drops lawsuit after 3 years
The Security and Exchange Commission (SEC) loses a new battle in its hunt for crypto companies in the USA. In a letter addressed to Judge Analisa Torres the SEC announces the dropping of charges against two executives of Ripple (XRP). For Ripple’s General Counsel, Stuart Alderoty. This is not an agreement between the two parties, but a capitulation on the part of the SEC which unilaterally dropped the lawsuit.
For the past three years, Brad Garlinghouse and Christian Larsin respectively CEO and Executive Chairman of Ripple were facing the SEC before the U.S. Attorney General. The two executives were charged with aiding and abetting the prosecution of the company. Ripple suspected of violating US securities laws.
Ripple still in the SEC’s sights
The dropping of charges against the two executives follows a previous legal victory by Ripple. Last July, the court ruled against the SEC which found that Ripple did not violate federal securities laws by making XRPs available to retail investors.
However, this legal victory was only partial. Indeed, the organization’s direct sales of XRP tokens to institutional investors were considered a violation of the laws by the court. On this point in particular, the SEC seems determined not to give up Ripple. In its letter to the court, the SEC has indicated its willingness to pursue the matter of selling XRP to institutional investors. However, the financial watchdog seems to prefer dialogue to legal action. The SEC is even willing to meet with Ripple to discuss this case.
Ripple executives severely criticize the SEC
The directors of Ripple have spoken out in response to the announcement that the legal proceedings against them have been dropped. In a statement published on October 19, Brad Garlinghouse and Christian Larsin then fiercely criticized the SEC which they describe as a “rogue regulator with a political agenda”.
For Bradley, the SEC goes after serious companies while turning a blind eye to players who steal customer funds. Ripple’s CEO was most likely referring to crypto exchanges repressed by the SEC in the USA. For example, companies such as FTX whose troubles with its former CEO Sam Bankman-Fried continue, executives have swindled citizens without raising the slightest suspicion of the SEC…
For Chris, the SEC presents itself as a financial regulator but practices crypto repression for political reasons. As a result, many crypto companies are forced to flee the United States. This has consequences for the country’s economy, he believes. In the third quarter of 2023, for example, almost 90% of Ripple’s hires did not take place in the USA.
Today, we are legally vindicated and personally redeemed in our battle against a troubling attempt to abuse the rules in order to advance a political agenda to stifle crypto in America.Chris Larsen.
Following the announcement of the dropping of charges against two Ripple executives, a price rise was seen on the crypto market. As part of this positive announcement October 19, 2023 the XRP token price jumped from $0.46 to around $0.49. Coincidence?
I dream of a world where every citizen has total control over themselves, including their finances. I believe that Bitcoin is one of the tools that will achieve this revolution. Since 2019, I am learning about this cryptocurrency and spreading the word around.