Following the U.S. Securities and Exchange Commission (SEC) dropping its claims against two Ripple Labs executives, XRP surged by 7%.
For almost three years, the SEC has charged Ripple’s CEO Brad Garlinghouse and Executive Chairman Chris Larsen for an alleged violation of U.S. securities law. In an address to SEC dropping suit, Garlinghouse had said he and Larsen were subject to baseless allegations.
In his words: “For nearly three years, Chris and I have been the subject of baseless allegations from a rogue regulator with a political agenda.
Instead of looking for the criminals stealing customer funds on offshore exchanges courting political favors, the SEC went after the good guys.
These include our entire company of innovators and entrepreneurs building a regulated business based in the US.
We look forward to the day this chapter is closed once and for all, now that the SEC has dropped the curtain on their absurd theatrics against Chris and me.”
So, what made the SEC drop charges against these Ripple Labs executives after three years? Find out.
SEC Was Wrong To Accuse Ripple Lab Executive From The Beginning
The SEC submitted a letter to Judge Analisa Torres to resolve their charge. It made the following statements: “Plaintiff Securities and Exchange Commission (SEC) respectfully notifies the Court of the stipulated dismissal of the SEC’s pending claims against Defendants Christian Larsen and Bradley Garlinghouse (“Individual Defendants”).”
#XRPCommunity #SECGov v. #Ripple #XRP BREAKING: CASE DISMISSED AGAINST BRAD GARLINGHOUSE AND CHRIS LARSEN pic.twitter.com/BYTe9152jM
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) October 19, 2023
The SEC further stated that the claim alleging Garlinghouse and Larson violated securities laws with the institutional sale of XRP should be dismissed. Why?
In December 2020, the SEC filed a lawsuit against Ripple, claiming they illegally raised over $1.3 billion through an unregistered securities offering by selling $XRP. Seemingly, the SEC hadn’t gathered enough evidence to prove their claim.
One of the factors contributing to this was Ripple’s particle victory in July this year. Judge Torres ruled that the XRP sale on public exchange did not constitute an unregistered securities offering and further rejected the SEC’s request to appeal the ruling.
Would Things Change for XRP?
XRP’s price has increased after a long period of falling, likely due to a positive development in its legal case with the SEC. Since the SEC dropped the suit against Ripple Labs executives, XRP has surged by 7% in 24 hours. It’s currently trading at $0.523, above a technical resistance price of $0.50, but it struggled to stay above it. We’re curious to see if it can remain above it this time.
Although the rise in XRP’s price is probably because of the legal case, it’s important to mention that the entire cryptocurrency market is doing well today, which might also boost XRP’s gains. Other cryptocurrencies like Solana have seen positive price increases, too. Currently, Solana is trading at around $26.82, up by more than 7.68% in the last 24 hours.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any service.
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