In a significant development, the U.S. Securities and Exchange Commission (SEC) has withdrawn its claims against two key Ripple Labs executives in the lawsuit that alleged violations of U.S. securities laws.
This move, detailed in a recent court filing in New York, marks a pivotal moment in the ongoing legal battle between the SEC and Ripple. The SEC has decided to drop allegations that Ripple Chief Executive Brad Garlinghouse and co-founder Chris Larsen aided and abetted the sale of XRP cryptocurrency, which had previously been ruled as unregistered securities. This lawsuit was initiated in December 2020, with the SEC accusing Ripple of illegally raising over $1.3 billion through an unregistered securities offering via XRP sales.
The lawsuit has seen various turns, with U.S. District Judge Analisa Torres granting Ripple a partial victory by acknowledging that XRP sales on public exchanges were not unregistered securities offerings. However, the SEC prevailed in demonstrating that some of Ripple’s XRP sales violated the law.
Brad Garlinghouse and Chris Larsen, who’ve been vocal critics of the SEC, accused the agency of pursuing a political agenda aimed at hindering the growth of the cryptocurrency industry in the United States. The case is now proceeding to determine the appropriate penalties for Ripple.
This development stands as a remarkable moment in the ongoing regulatory battle in the cryptocurrency industry, underscoring the need for clear and updated regulations in the ever-evolving crypto landscape.
