The US Securities and Exchange Commission (SEC) has dropped charges against Ripple CEO Brad Garlinghouse and Chairman Chris Larsen. The charges alleged that Garlinghouse and Larsen had violated securities laws by selling unregistered securities in the form of the cryptocurrency XRP.
The SEC’s decision to drop the charges is a major victory for Ripple and the cryptocurrency industry as a whole. It is also a sign that the SEC may be becoming more open to cryptocurrencies.
The SEC’s case against Ripple has been ongoing for nearly three years. During that time, the SEC has argued that XRP is a security and that Garlinghouse and Larsen violated securities laws by selling unregistered securities. Ripple has denied these allegations, arguing that XRP is a utility token and not a security.
In July 2023, a federal judge ruled that the SEC had not provided enough evidence to show that XRP is a security. The judge also ruled that the SEC had violated Garlinghouse and Larsen’s due process rights by failing to provide them with clear notice of what laws they were accused of violating.
The SEC appealed the judge’s ruling, but the agency has now decided to drop the charges against Garlinghouse and Larsen. The SEC has not given a reason for dropping the charges, but it is likely that the agency was concerned about the outcome of the appeal.
The SEC’s decision to drop the charges against Garlinghouse and Larsen is a significant development for the cryptocurrency industry. It is a sign that the SEC may be becoming more open to cryptocurrencies and that the agency may be less likely to pursue enforcement actions against cryptocurrency companies.
What does it mean for Ripple?
The SEC’s decision to drop the charges against Garlinghouse and Larsen is a major victory for Ripple. It means that Ripple can now focus on its business without the threat of SEC enforcement action.
The SEC’s decision is also likely to boost confidence in Ripple and its cryptocurrency, XRP. The fact that the SEC has dropped the charges suggests that the agency does not believe that XRP is a security. This could lead to more institutional investors and other buyers getting involved in the XRP market.
Conclusion
The SEC’s decision to drop the charges against Ripple CEO Brad Garlinghouse and Chairman Chris Larsen is a significant development for the cryptocurrency industry. It is a sign that the SEC may be becoming more open to cryptocurrencies and that the agency may be less likely to pursue enforcement actions against cryptocurrency companies.
The SEC’s decision is also a major victory for Ripple and its cryptocurrency, XRP. It means that Ripple can now focus on its business without the threat of SEC enforcement action and that the XRP market is likely to see increased interest from institutional investors and other buyers.tunesharemore_vert
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