Ripple, XRP Secure Third Victory Against SEC: Charges Dropped

The latest development has extended Ripple and XRP’s winning streak against the Securities and Exchange Commission (SEC) to three consecutive victories.

Specifically, the charges against Ripple’s CEO Brad Garlinghouse and Executive Chairman Chris Larsen have been dropped.

The SEC has voluntarily withdrawn its accusation against Ripple’s executives, according to a recent court filing.

Recall that the SEC filed a lawsuit in December 2020 alleging Larsen and Garlinghouse conducted an unregistered offering of XRP securities.

The US regulator alleged that the two Ripple executives aided the company in violating federal securities laws via XRP transactions.

The dismissal of the case implies the cancellation of the trial scheduled for April 2024, marking another legal victory for Ripple.

Recall that a US court denied the SEC permission to appeal the case earlier this month. The appeal is predicated on the victory judgment obtained by XRP in July.

In particular, the court ruled in July that XRP is not a security, as claimed by the SEC. Following the verdict, the U.S. regulator sought certification for an interlocutory appeal on two distinct legal issues. However, the court denied both requests.

Consequently, Ripple and XRP have obtained three positive outcomes since July, whereas the SEC has been unsuccessful.

Garlinghouse responded to the development on the X platform. Today was even better than yesterday. “Ripple: 3; SEC: 0,” commented Garlinghouse. In the meantime, he lamented that the SEC illegally targeted him and Ripple’s chairman in an attempt to destroy the company.

In particular, Garlinghouse emphasized that neither fraud nor misrepresentation were involved in the case against XRP.

Despite this, they were “targeted by the SEC in a ruthless attempt to personally ruin” them and the company that “so many have worked tirelessly to build” over the past decade.

Similarly, Ripple’s Chief Legal Officer, Stuart Alderoty, argued that the SEC made a significant mistake by pursuing Garlinghouse and Larsen personally.

The attorney added that the regulator capitulated because it could not withstand the weight of its error.

This is the third consecutive victory for Ripple, following the July 13 decision ruling that XRP is NOT a security as a matter of law, the October 3 decision denying the SEC’s request for an interlocutory appeal, and now this.

In the meantime, some legal experts have argued that the SEC’s decision to cancel the scheduled trial against the two Ripple executives allows for an appeal of the July court ruling.