Blockchain payments firm Ripple has again scored another major victory in its ongoing case against the United States Securities and Exchange Commission (SEC).
SEC Drops Charges Against Ripple Executives
In a filing with the US District Court for the Southern District of New York, the SEC stated that it has voluntarily dropped all pending claims against Ripple’s top executives Brad Garlinghouse and Chris Larsen.
The SEC has charged both executives for allegedly aiding and abetting Ripple’s violation of securities laws through the institutional sale of XRP tokens. On October 3, a court order set a trial date for the alleged claims for April 23, 2024.
However, the SEC stated in its latest filing that its voluntary dismissal “obviates the need for a scheduled trial on this claim and moots the October 3, 2023 scheduling order.”
The document also mentioned that the SEC and Ripple are trying to reach a settlement. As stated in the filing, SEC and Ripple are discussing how to resolve the remaining claims in the case related to the institutional sale of XRP.
Not a Settlement But a Surrender
While the SEC claims it is trying to reach a settlement, Ripple’s Chief Legal Officer Stuart Alderoty stated that the SEC dropping the pending charges isn’t a settlement but a surrender.
“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,” he said.
Garlinghouse, the CEO of Ripple, described the dismissal as another significant victory for Ripple.
“In all seriousness, Chris and I (in a case involving no claims of fraud or misrepresentations) were targeted by the SEC in a ruthless attempt to personally ruin us and the company so many have worked hard to build for over a decade. The SEC repeatedly kept its eye off the ball while secretly meeting with the likes of SBF – failing again and again to protect US consumers & businesses,” he added.
The latest dismissal marks the third consecutive victory for Ripple in its case against the securities watchdog. In July, a federal judge ruled in Ripple’s favor that “XRP is not, in and of itself a security.” Earlier this month, the judge denied SEC’s request for an interlocutory appeal related to the ruling.
