As Ripple scores another victory in its legal battle, the US SEC is on the backfoot.
On Thursday, October 19, the US Securities and Exchange Commission (seconds) Ripple executives-CEO sanctioned brad garlinghouse and executive chairman Chris Larson – all among those charged in the lawsuit.
This is the third major victory for Garlinghouse and his team since the first court decision in July 2023. The SEC had alleged that Larsen and Garlinghouse defrauded investors in connection with XRP by selling more than $1 billion worth of these digital coins without proper registration. In July, U.S. District Judge Analisa Torres determined that XRP qualifies as a security when it is sold directly to institutions, but does not when it is made available to the public on cryptocurrency exchanges.
Earlier this month, Torres rejected the SEC’s request for an expedited appeal of its decision. The Ripple case poses a major challenge to the SEC which thinks most digital tokens are securities. However, several players in the crypto sector have challenged the SEC’s decisions on crypto securities. Speaking on current developments, Ripple CEO Brad Garlinghouse Said,
“For almost three years, Chris and I have been the subject of baseless allegations from a rogue regulator with a political agenda. Instead of going after criminals stealing customer funds on offshore exchanges who were taking political advantage, the SEC went after the good guys – along with our entire company of innovators and entrepreneurs – who were building a regulated business in America. are doing. The day this chapter closes forever is now that the SEC has pulled the curtain on its absurd theatrics against Chris and me.”
SEC on the backfoot
Elliot Stein, an analyst at Bloomberg Intelligence, commented on the SEC’s recent action, noting that it provides the agency with an opportunity to accelerate its appeal against aspects of a lost case, rather than prosecuting individuals. Stein speculated that the SEC intended to prevent adverse information from emerging during trial that could potentially undermine the SEC’s previous victories with respect to direct institutional sales.
In response to the SEC’s move, Wave A statement was issued calling it a “remarkable surrender by the government”. Speaking on the development, Ripple Chief Legal Officer Stuart Alderotti said:
“This is not a compromise. This is a capitulation by the SEC.”
Former SEC counsel Christian Schultz, who currently serves as a partner at Arnold & Porter, explained the reasoning behind the SEC’s decision. Dismissing the case may likely be a desire to prevent any delays in appealing the SEC’s claims against Ripple and the executives, as these claims were dismissed by Judge Torres on summary judgment.
Immediately after development, xrp The price jumped 8% to $0.51. Investors will keep a close eye if the price of XRP rises to $1.
Bhushan is a fintech enthusiast and has a good grasp of understanding the financial markets. His interest in economics and finance drew his attention to the newly emerging blockchain technology and cryptocurrency markets. He is in a constant process of learning and keeps himself motivated by sharing his acquired knowledge. In his spare time he reads adventure fantasy novels and occasionally explores his culinary skills.
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