The United States Securities and Exchange Commission (SEC) has dismissed its case against Ripple Labs’ CEO, Brad Garlinghouse, and the company’s founder, Chris Larsen. This development marks a pivotal moment in the ongoing legal tussle involving Ripple Labs Inc.
Ripple’s Victory in the Legal Battle Between SEC
A formal announcement from the SEC stated, “Plaintiff Securities and Exchange Commission (‘SEC’) respectfully notifies the Court of the stipulated dismissal of the SEC’s pending claims against Defendants Christian Larsen and Bradley Garlinghouse (‘Individual Defendants’).” This notification was presented in a letter addressed to Judge Torres.
Ripple Labs clarified that this dismissal has occurred without prejudice, meaning that the allegations have been dropped without affecting potential future legal actions.
This unexpected turn of events is a significant victory for Ripple Labs, building on their earlier success in July when Judge Analisa Torres determined that the sale of XRP on secondary markets did not meet the criteria for an investment contract.
The SEC’s case against Ripple Labs was intricate, involving accusations that the company’s leadership had orchestrated the sale of XRP, classifying it as an investment contract.
Ripple CEO Brad Garlinghouse Victory Rally
Brad Garlinghouse, seizing the moment with a touch of humor, took to Twitter, stating, “Today was an even better day. Ripple: 3, SEC: 0.” He went on to shed light on what he considered questionable actions by the SEC during the case, suggesting that they had squandered millions of taxpayer dollars.
Chris Larsen, Executive Chairman of Ripple Labs, also shared his perspective, remarking, “Today, we are legally vindicated and personally redeemed in our battle against a troubling attempt to abuse the rules to advance a political agenda aimed at suffocating crypto in America. It is a travesty that we were forced to defend ourselves from an ill-advised attack that was flawed from the day it was filed.”
Stuart Alderoty, Ripple’s chief legal officer, also voiced his thoughts, characterizing the SEC’s actions as a “surrender” rather than a settlement, while adding that they had made a grave mistake by targeting Garlinghouse and Larsen personally.
Conclusion
This latest triumph could establish a precedent, not only for the XRP case but for other cryptocurrencies like Cardano (ADA), Solana (SOL), and Polygon (MATIC) that are also under the SEC’s scrutiny. Furthermore, the uncontested ruling in favor of Grayscale has raised optimism for the eventual approval of a Bitcoin spot ETF.
In the wake of this news, XRP’s value surged. They were experiencing a remarkable 10% increase in a matter of minutes, reaching $0.51. This impressive uptick followed a period of low volatility in the crypto markets earlier in the day.
Meanwhile, the cryptocurrency community wasted no time responding to the developments. The hashtag “#firegarygensler” is now dominating discussions across social media platforms, particularly on X (formerly Twitter).
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