Ripple’s Brad Garlinghouse and Chris Larsen Cleared of SEC Charges, XRP Price Spikes
In a surprising turn of events, the U.S. Securities and Exchange Commission (SEC) has officially dismissed its pending claims against Ripple’s top executives, Brad Garlinghouse and Chris Larsen. This news sent shockwaves through the cryptocurrency market, causing the price of XRP to spike more than 6%. In an unexpected twist, the trial scheduled for April 2024 has been canceled as a result of this decision.
The SEC’s initial claims against Garlinghouse and Larsen revolved around allegations that they had aided and abetted Ripple in violating Section 5 of the Securities Act of 1933. This particular allegation was tied to Ripple’s “institutional sales” of the XRP cryptocurrency, a contentious issue that has been the focus of regulatory scrutiny for some time.
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) October 19, 2023
As reported by AZCoin News, an October 3 court order had set a trial date to address the SEC’s claims against the Ripple executives. This trial had been highly anticipated and was expected to have significant implications for the cryptocurrency industry. However, the SEC’s unexpected dismissal of the claims renders the upcoming trial redundant.
The SEC’s filing indicates that the regulatory body is now opting to engage further with Ripple to determine the appropriate remedies for the purported Section 5 violations related to the institutional sales of the XRP token. This marks a significant shift in the SEC’s approach, as they seem to be moving away from pursuing litigation against Ripple’s top brass and instead focusing on working towards a resolution.
The decision to drop the charges against Garlinghouse and Larsen is a remarkable development in the ongoing legal saga between Ripple and the SEC. It’s a stark departure from the SEC’s previous stance, where they had accused the executives of intentionally violating securities laws by selling XRP. This move also underscores the evolving regulatory landscape for cryptocurrencies in the United States.
As a result of this news, XRP, Ripple’s native cryptocurrency, experienced a rapid surge in price. The 6% increase in XRP’s value reflects the positive sentiment among investors and the crypto community, who have closely followed the legal battle between Ripple and the SEC. The dismissal of the claims against the executives has injected a newfound sense of optimism into the XRP market, as it removes a cloud of uncertainty that had hung over the cryptocurrency for some time.
The decision to drop the charges against Garlinghouse and Larsen will undoubtedly have long-lasting implications for the cryptocurrency industry. It signals a potential shift in the SEC’s approach to regulating digital assets and may pave the way for more constructive dialogue between regulatory authorities and the blockchain and cryptocurrency industry.
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