The United States Securities and Exchange Commission (SEC) took a critical step for Ripple today. Accordingly, Ripple filed a motion to dismiss the lawsuit against CEO Brad Garlinghouse and co-founder Chris Larsen. Accordingly, this marked a significant development in a legal battle that has captured the attention of the cryptocurrency industry.
SEC’s Ripple decision attracts attention
The SEC’s decision comes after a US judge rejected the SEC’s appeal of the landmark ruling in favor of Ripple in July. The SEC had initially accused Ripple of raising more than $1.3 billion through an unauthorized digital asset securities offering.
The SEC made a serious mistake going after Brad & Chris personally – and now, they’ve capitulated, dismissing all charges against our executives. This is not a settlement. This is a surrender by the SEC. https://t.co/TOsG64ZdEx
— Stuart Alderoty (@s_alderoty) October 19, 2023
The court ruling was that Ripple’s public sale of XRP should not be classified as a security. This decision represents a major departure from the SEC’s initial stance. On the other hand, it is also a turning point for the cryptocurrency industry. Ripple’s Chief Legal Officer Stuart Alderoty described this as a “surrender” and not a compromise. This perspective has the potential to influence the broader regulatory framework for digital assets. For this reason, the SEC move had a repercussion in the cryptocurrency industry.
Conflict of laws
Ripple CEO Brad Garlinghouse, one of the central figures in the legal dispute, spoke on the issue. He described the SEC’s actions as a targeted attempt to harm both him and the company. However, he expressed satisfaction with what he sees as “another win” for Ripple. Garlinghouse also criticized the SEC for allegedly holding secret meetings with industry figures.
The cryptocurrency market responded positively to this legal development. Accordingly, the Ripple XRP price experienced a noticeable increase of over 6%. Although it later pulled back from the peak, the market’s reaction underscores the impact of the SEC’s decision to dismiss the case. As Kriptokoin.com, we should point out that the court process is still ongoing. On the other hand, the litigation process is postponed until 2024.
More meetings are now on the agenda
It is expected that there will be important developments after the case against Ripple’s key executives is dropped. Accordingly, there is a high probability that the SEC and Ripple will hold further meetings. The primary goal is to create a briefing schedule to determine appropriate solutions regarding Ripple. This important step towards a solution attracts attention. It also represents a victory for Ripple. On the other hand, it sets an effective precedent for cryptocurrency regulation in the United States.
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