After significant events, Ripple, its CEO Brad Garlinghouse, and Chief Executive Officer Chris Larsen emerged victorious as the US Securities and Exchange Commission (SEC) dropped all charges against them. The legal battle, which began in December 2020, culminated on October 19, 2023, when Ripple announced an outright denial of the claims, marking a significant moment in the cryptocurrency industry.
Overview of court decisions
The lawsuit initiated by the SEC accused Ripple of engaging in an unregistered securities offering through the sale of XRP. The climax of the case came on July 13, 2023, when Mr. Analisa Torres, a district judge in the United States District Court for the Southern District of New York, delivered the decision. The court partially accepted and partially rejected both the SEC and Ripple’s requests. Notably, the court granted the SEC’s motion for summary judgment on Corporate Sales but denied it on other issues. In contrast, Ripple’s offer was accepted with respect to Programmatic Sales, Other Distributions, and sales by Larsen and Garlinghouse, but rejected with respect to Enterprise Sales. Allegations of aiding and abetting against the executives were also rejected.
Ripple official’s expectations
Following the decision, the SEC definitively dropped all charges against Ripple leadership. On October 19, 2023, Ripple announced that both Brad Garlinghouse and Chris Larsen had been cleared of all allegations, signaling that the regulator had withdrawn. Ripple’s Chief Legal Officer Stuart Alderoty offered insight into the future course of cryptocurrency regulation in the United States for 2024. He summarized the main expectations in a series of predictions made on December 15, 2023:
1. End of Ripple’s legal battle
Alderoty predicts the final resolution of Ripple’s legal dispute with the SEC in 2024. Despite the outcome of this protracted case, expect the SEC to take an aggressive stance through “regulation by enforcement” targeting other major players in the crypto industry.
2. Safeguards against SEC and court intervention
Alderoty envisions a greater role for the judiciary in curbing what he perceives as overreach by the SEC. He predicts the SEC will suffer serious defeats in litigation, potentially leading to a showdown at the U.S. Supreme Court. These results could set influential precedents that shape the regulatory environment for cryptocurrencies.
3. Congress agreement
While there is a consensus among US lawmakers on the need for crypto regulation, Alderoty foresees a lack of agreement on specific actions. This dispute could stall the legislation and cause regulatory uncertainty and stagnation for US crypto firms. Meanwhile, other countries may also make significant advances in the crypto space, putting U.S. firms at a disadvantage in terms of global competition.
Ripple’s legal victory against the SEC marks a turning point in the crypto industry’s regulatory environment. As the dust settles on this high-profile case, forecasts for 2024 indicate a dynamic and challenging year ahead, with legal battles, regulatory developments, and the global positioning of US crypto companies at the forefront of industry discussions.
To be informed about the latest developments, follow us Twitter’in, Facebookin and InstagramFollow on . Telegram And YouTube Join our channel.