SEC drops charges against Ripple executives Brad Garlinghouse and Chris Larsen.
The U.S. Securities and Exchange Commission (SEC) has officially withdrawn its allegations against Ripple‘s top executives, Brad Garlinghouse and Chris Larsen.
The SEC had initially accused Garlinghouse and Larsen of aiding Ripple in violating Section 5 of the Securities Act of 1933, specifically related to Ripple’s “institutional sales” of the XRP cryptocurrency. A trial date for these allegations had been set for October 3, but the recent dismissal renders the trial unnecessary.
This unexpected turn of events has taken many by surprise, with ETF analyst James Seyffart expressing his astonishment. The dismissal represents a significant victory for Ripple’s executives. However, it does not mark the end of the SEC’s scrutiny of Ripple Labs.
The SEC’s filing indicates that they will continue to engage with Ripple to determine appropriate remedies for the alleged Section 5 violations in connection with the institutional sales of the XRP token.
It’s worth noting that the SEC’s recent motion for an interlocutory appeal in their case against Ripple was denied. Nevertheless, legal experts believe that an appeal remains a possibility.
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