{"id":177771,"date":"2023-10-20T12:21:37","date_gmt":"2023-10-20T06:51:37","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=177771"},"modified":"2023-10-20T12:21:37","modified_gmt":"2023-10-20T06:51:37","slug":"sec-dismisses-lawsuit-against-ripple-execs-in-stunning-capitulation-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/sec-dismisses-lawsuit-against-ripple-execs-in-stunning-capitulation-crypto-news\/","title":{"rendered":"SEC Dismisses Lawsuit Against Ripple Execs in ‘Stunning Capitulation’ – Crypto News"},"content":{"rendered":"
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The United States Securities and Exchange Commission (SEC) voluntarily dismissed charges Thursday against Ripple CEO Brad Garlinghouse and Executive Chairman Chris Larsen, both of whom had been charged alongside the company for allegedly violating securities laws with sales of the XRP<\/a> token.<\/p>\n

Ripple described the decision as a “stunning capitulation” in a press release<\/a>, while Ripple Chief Legal Officer Stuart Alderoty called it<\/a> “a surrender by the SEC” in a tweet. The price of XRP is up about 5%<\/a> today, with most of that upward action coming after the news broke.<\/p>\n

Garlinghouse and Larsen were first charged in late 2020, along with Ripple, for allegedly violating securities laws by offering and distributing the cryptocurrency XRP. In July, a <\/span>federal judge ruled<\/span><\/a> that the XRP token \u201cis not necessarily a security on its face,\u201d and that Ripple’s programmatic sales of XRP on exchanges were not securities offerings, in a major victory for the crypto company. Earlier this month, the SEC <\/span>failed to convince<\/span><\/a> the same judge that the ruling should be overturned before a final judgment is entered in the case next spring.<\/span><\/p>\n

\u201cIt is a travesty that we were forced to defend ourselves from an ill-advised attack that was flawed from the day it was filed,” Ripple Executive Chairman Chris Larsen said in a statement. “While justice ultimately prevailed, the government\u2019s actions that led to this point raise questions about the origin and motivation of this lawsuit.\u201d<\/span><\/p>\n

It is unclear what specifically led the SEC to drop charges against Garlinghouse and Larsen as individuals, though the move may have been informed by the agency’s recent string of court losses against Ripple. The SEC did not immediately respond to Decrypt’s <\/i>request for comment.<\/span><\/p>\n

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The SEC made a serious mistake going after Brad & Chris personally \u2013 and now, they\u2019ve capitulated, dismissing all charges against our executives. This is not a settlement. This is a surrender by the SEC. https:\/\/t.co\/TOsG64ZdEx<\/a><\/p>\n

\u2014 Stuart Alderoty (@s_alderoty) October 19, 2023<\/a><\/p>\n<\/blockquote>\n<\/div>\n

Regardless, the regulator is still pressing forward with its overarching case against Ripple\u2014one which, for years, has been framed as a <\/span>defining legal showdown<\/span><\/a> set to dictate the fate of crypto regulation in the United States. For this reason, Ripple\u2019s legal fight against the SEC has been supported by numerous major players of the crypto industry, including the American crypto exchange <\/span>Coinbase<\/span><\/a>.\u00a0<\/span><\/p>\n

While the industry has taken Ripple\u2019s recent string of legal victories as a sign of major encouragement\u2014the crypto market <\/span>soared $73.5 billion<\/span><\/a> in value in the hours following Ripple\u2019s favorable July ruling\u2014the company, and the crypto ecosystem as a whole, are not out of the woods yet.<\/span><\/p>\n

The judge overseeing the SEC\u2019s suit against Ripple found in July that the sale of XRP tokens to institutional investors did constitute illegally unregistered securities offerings. Further, the SEC is actively engaged in a slew of lawsuits against other pillars of the crypto industry, including <\/span>Coinbase<\/span><\/a>, <\/span>Binance<\/span><\/a>, and <\/span>Tron<\/span><\/a>.<\/span><\/p>\n

Editor’s note: This story was updated after publication with additional information.<\/i><\/p>\n

Edited by Andrew Hayward<\/a><\/i><\/p>\n

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Stay on top of crypto news, get daily updates in your inbox.<\/h3>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The United States Securities and Exchange Commission (SEC) voluntarily dismissed charges Thursday against Ripple CEO Brad Garlinghouse and Executive Chairman Chris Larsen, both of whom had been charged alongside the company for allegedly violating securities laws with sales of the XRP token. Ripple described the decision as a “stunning capitulation” in a press release, while […]<\/p>\n","protected":false},"author":2,"featured_media":126396,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-177771","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/177771","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=177771"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/177771\/revisions"}],"predecessor-version":[{"id":177776,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/177771\/revisions\/177776"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/126396"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=177771"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=177771"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=177771"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}