Ripple and XRP have clinched another major victory in the protracted battle against the US Securities and Exchange Commission (SEC).
The latest development has brought Ripple and XRP’s winning streak to three consecutive triumphs against the SEC.
Trial Against Ripple Executives Dismissed
In particular, the charges against Ripple’s CEO, Brad Garlinghouse, and its Executive Chairman, Chris Larsen, have been dismissed. This development came via a recent court statement where the SEC stated that it has voluntarily withdrawn its allegation against the Ripple executives.
Recall that in December 2020, the SEC filed a lawsuit alleging Larsen and Garlinghouse carried out an unregistered security offering with XRP. The US regulator alleged the two Ripple executives assisted the company in violating federal securities laws through its XRP transactions.
The case dismissal implies the cancellation of the April 2024 trial, marking another legal victory for Ripple. Recall that early this month, the US court denied the SEC permission to file an appeal in the legal case. The appeal bid rests on the victory judgment XRP secured in July.
Specifically, the court ruled in July that XRP is not a security as the SEC claimed. Following the judgment, the US regulator pursued certification for an interlocutory appeal concerning two distinct legal issues. However, the court granted neither of them.
Therefore, Ripple and XRP have won three favorable outcomes since July, while the SEC has had no success.
Ripple Executives React
Garlinghouse took to the X platform to react to the development. “Today was an even better day. Ripple: 3; SEC: 0,” Garlinghouse remarked. Meanwhile, he lamented that the SEC unlawfully targeted him and Ripple’s chairman in a deliberate attempt to wreck the company.
In particular, Garlinghouse underscored that the case against XRP involved no fraud or misrepresentation. Yet, they “were targeted by the SEC in a ruthless attempt to personally ruin” them and the company “so many have worked hard to build for over a decade.”
Today was an even better day.
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… https://t.co/YsQxewFnj9
— Brad Garlinghouse (@bgarlinghouse) October 19, 2023
Similarly, Stuart Alderoty, Ripple’s Chief Legal Officer, argued that the SEC committed a significant error by pursuing Garlinghouse and Larsen personally. The lawyer added that the regulator surrendered as it could not withstand the weight of the error it committed.
“That’s three consecutive wins for Ripple, including the July 13 decision ruling that as a matter of law, XRP is NOT a security, the Oct 3 decision denying the SEC’s bid for an interlocutory appeal, and now this.”
That’s 3 consecutive wins for Ripple including the July 13 decision ruling that as a matter of law XRP is NOT a security, the Oct 3 decision denying the SEC’s bid for an interlocutory appeal, and now this.
— Stuart Alderoty (@s_alderoty) October 19, 2023
Meanwhile, some legal experts have argued that the SEC’s dismissal of the scheduled trial against the two Ripple executives opens the door for an appeal of the July court ruling.