The SEC has ordered cryptocurrency exchange Coinbase to delist all digital assets except Bitcoin. Learn about the regulatory decision.
- Brad Garlinghouse and Chris Larsen of Ripple are now free from charges. However, Ripple and the SEC must still agree on penalties related to violations concerning the institutional sale of XRP.
- XRP, the token issued by Ripple, spiked more than 8.52%, reaching $0.51.
Ripple Is on A Winning Streak – Executives are Out of SEC’s Picture
Previously, the SEC had accused Brad Garlinghouse and Chris Larsen of assisting Ripple in its institutional sales of XRP.
For nearly three years, Chris and I have been the subject of unfounded allegations from a rogue regulator… Instead of pursuing those stealing customer funds on offshore exchanges, the SEC targeted us, the good actors, along with our entire team of innovators and entrepreneurs.Brad Garlinghouse, the CEO of Ripple
Chris Larsen described the case as an abuse by the administrative state and an effort to harm Ripple.
The SEC did not provide a public statement but conveyed its decision through a court filing on October 19.
The SEC stated that one document dismissed its claims without prejudice and fees.
In another document, the agency explained that its voluntary dismissal eliminated the need for a trial originally scheduled for April.
Ripple Case Still Ongoing
The SEC’s case against Ripple continues, and the recent dismissal needs to mark the full conclusion of the legal proceedings.
The case revolves around the actions of Ripple as a company, not just the actions of its members.
Ripple partially won on July 13 when a judge ruled that the sales of XRP didn’t violate securities laws.
In August, the SEC attempted to appeal the ruling that favored Ripple’s programmatic sales of XRP.
However, in October, the judge rejected the SEC’s appeal request on October 3, effectively closing that part of the case.
Despite this, the judge’s original ruling stated that Ripple’s sales to institutional investors were considered securities.
Ripple and the SEC must still determine the appropriate remedies for violations related to these institutional sales.
Ripple Reacts Positively to These News
Upon hearing the news, XRP’s price saw an 8.52% increase, reaching $0.51. This is not the first time XRP spiked after a streak of positive news.
Earlier this summer, on the 13th of July, XRP spiked more than 71.14%. The US judge ruled the sale of XRP tokens on exchanges did not constitute investment contracts.
Also, the company received a full payment license in Singapore, which further fueled the price increase.
Could Ripple win the lawsuit against the SEC?