SEC Announces Movement in Ripple Case

In a surprising twist of fate, lawyers for the United States Securities and Exchange Commission (SEC) have made headlines by announcing their intent to dismiss all claims against Ripple CEO Brad Garlinghouse and Executive Chair Chris Larsen. This development, revealed on October 19 in U.S. District Court for the Southern District of New York, suggests that the ongoing saga surrounding Ripple’s alleged securities violations is taking an unexpected turn.

The Case Details

According to the SEC’s filing, the parties involved have agreed to dismiss the claims with prejudice, meaning they can’t be brought back to court. This certainly raises eyebrows—what does this mean for the SEC’s broader case against Ripple itself, initiated back in 2020? While they’re still pursuing claims slightly unrelated to Garlinghouse or Larsen, it looks like the heat is dissipating for the two executives.

Ripple’s Response: A Twist of Irony

In a characteristically defiant response, Ripple’s Chief Legal Officer Stuart Alderoty described the SEC’s action not as a settlement, but a “surrender.” Talk about plot twists! Ripple dubbed this decision a “stunning capitulation” of the SEC’s relentless pursuit, and let’s be honest, tensions have been high. Garlinghouse himself chimed in with a tongue-in-cheek tweet about the courtroom showdown: “Ripple: 3 SEC: 0”. So, who knew court cases could sound like a sporting event?

Ripple’s Ongoing Battle

Despite this seemingly positive news for Ripple, the SEC is still firm on seeking remedies against the company for alleged violations during its Institutional Sales of XRP. They want to discuss their options and propose a schedule for further discourse by November 9, 2023. Sounds like they might still be packing their bags for a trip back to court.

The Bigger Picture

The curious decision by the SEC to drop these claims raises questions about their next steps. Some speculate that this is a strategic move as the SEC contemplates an appeal concerning the court’s recent ruling that determined XRP is not a security when sold to retail investors. But why give Garlinghouse and Larsen a break now?

• Ripple’s legal woes began in December 2020.
• A recent ruling by a federal judge favored Ripple by declaring XRP not a security.
• Other crypto-related figures continue to face legal scrutiny by the SEC.

Amidst this uncertainty, crypto enthusiasts are likely keeping a watchful eye as cases against figures such as the former Celsius CEO and former FTX CEO churn onward. One can only wonder what the next episode in this drama will bring!