Ripple Achieves Another Victory in SEC Lawsuit

A blockchain company has celebrated a legal victory in its ongoing conflict with the US Securities and Exchange Commission (SEC), as revealed in a court document from Wednesday. The SEC has retracted allegations against Ripple CEO Brad Garlinghouse and Executive Chairman Chris Larsen, who had previously faced accusations of assisting the company in violating federal securities laws in relation to transactions involving Ripple’s native token, XRP.

The dismissal of these charges resulted in the cancellation of a trial scheduled for next year, contributing to Ripple’s string of legal successes. This follows a significant win for Ripple in July, when it was determined that the company did not breach securities laws by offering XRP on exchanges to retail customers; instead, only direct sales to institutional investors were classified as violations.

The SEC initially filed charges against Ripple in 2020 for allegedly conducting a $1.3 billion unregistered securities offering related to the XRP token. Despite this ongoing litigation, Ripple has consistently achieved favorable outcomes. Garlinghouse announced this latest victory on social media, criticizing the SEC’s handling of the case.

Significantly, Judge Analisa Torres ruled in July that Ripple did not violate securities laws by selling XRP to retail investors. The SEC’s appeal against this ruling was dismissed earlier this month, further strengthening Ripple’s position.

Garlinghouse took the opportunity to critique the SEC, labeling it a rogue regulator with political motives and accusing it of making unfounded allegations while overlooking illicit activities that affect customers. He emphasized the considerable implications this development has for the digital asset landscape.

Despite these wins for Ripple, the SEC is expected to continue pursuing its claims against the company. Reports indicate that the two parties plan to engage in discussions regarding potential legal remedies for Ripple’s Section 5 violations, which involve the sale of XRP to institutional investors. In light of these ongoing legal issues, much of Ripple’s business operations have shifted offshore, including various exchanges.