SEC Stops Attack On Ripple Top Leaders In XRP Lawsuit

Key Points:

• SEC drops charges against Ripple top leaders for aiding unregistered XRP sales.
• Ripple secured its third legal win, including the “XRP not a security” ruling.
• Ongoing case questions SEC’s stance on crypto securities.

The U.S. Securities and Exchange Commission (SEC) has dropped charges against two prominent Ripple top leaders, Brad Garlinghouse and Chris Larsen, according to an official press release on October 19.

SEC Drops Charges Against Ripple Top Leaders

The regulatory agency decided to abandon allegations that the duo had aided and abetted the sale of the cryptocurrency XRP, which a judge had ruled amounted to unregistered sales of securities.

Previously, the SEC had filed charges against Ripple top leaders, accusing them of assisting Ripple Labs in violating regulations pertaining to XRP’s offers and sales in ‘Institutional Sales.’ However, the SEC has now formally dismissed these claims without prejudice or associated costs.

This marks the third consecutive legal victory for Garlinghouse, Larsen, and Ripple. In July 2023, a significant ruling declared that “XRP is not, in and of itself a security.” Furthermore, in October, the SEC’s request for an interlocutory appeal was denied by a U.S. District Judge Analisa Torres in Manhattan, who had earlier granted Ripple a partial win in the case by ruling that sales of XRP on public exchanges were not unregistered securities offerings.

Ripple’s Legal Victories Challenge SEC’s Crypto Securities Position

Founded in 2012, Ripple has been a prominent player in the cryptocurrency space, with its XRP token consistently ranking among the top cryptocurrencies by market cap. However, their issuance of XRP to both institutional and retail investors led to a 2020 SEC lawsuit, accusing the company and its executives of offering unregistered securities.

The case became a pivotal battleground between the SEC and the crypto industry, as then-SEC Chairman Gary Gensler contended that most cryptocurrencies constituted unregistered securities. Many in the industry hoped that a Ripple victory would challenge the SEC’s stance.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.