Key Takeaways -
- The SEC has officially withdrawn all legal charges against Ripple's CEO and co-founder, marking a significant win for the company.
- According to Ripple's legal team, the SEC's move is not a settlement but a complete surrender, freeing both parties from legal fees or penalties.
- The news led to a nearly 6% upward rally in XRP's market price, although a minor retracement followed.
In a move that's grabbed the crypto community's focus, the U.S. Securities and Exchange Commission (SEC) has fully retracted all legal accusations against Ripple's leadership, CEO Brad Garlinghouse and co-founder Chris Larsen. This analysis dives into the critical aspects of this landmark verdict, its impact on Ripple, and its broader implications for the crypto sector.
The Final Chapter: SEC's Retreat
In an unparalleled and extraordinary move, the U.S. Securities and Exchange Commission (SEC) has decided to dismiss all existing legal charges against Ripple's CEO, Brad Garlinghouse, and its co-founder, Chris Larsen. Ripple's legal team wants to make it abundantly clear that this action by the SEC is not to be interpreted as a simple settlement; rather, it's a full and outright capitulation by the regulatory body.
Dissecting the Charges
Originally, the SEC had alleged that both executives assisted Ripple Labs Inc. in violating securities laws, specifically tied to the institutional trading of XRP tokens. However, these accusations have now been entirely dropped, leaving both sides free from legal costs or penalties.
The SEC informed District Judge Analisa Torres that this voluntary dismissal effectively cancels the need for the planned trial. The spotlight now moves to the unresolved matters related to Ripple's institutional XRP sales, with both parties actively discussing resolutions.
Brad Garlinghouse aired his sentiments on social media, stating that the SEC unfairly aimed to damage both his and Larsen's reputations, along with the company they've diligently built. He also questioned the SEC's resource allocation, asking how much taxpayer money was squandered in this legal ordeal.
A Perspective from Ripple's Legal Team
Stuart Alderoty, Ripple's Chief Legal Officer, was clear-cut in his evaluation. He emphasized that the SEC erred significantly by personally targeting Garlinghouse and Larsen and stressed that this was not a settlement but a total surrender by the SEC.
Financial Implications for XRP
The announcement sparked an upward rally in XRP's market value, showing a nearly 6% surge. Despite a slight pullback, XRP's market cap remains robust. As of this writing, XRP is trading around $0.51.