Ripple's Big Win: Garlinghouse and Larsen Cleared of All Charges by SEC

The U.S. Securities and Exchange Commission (SEC) has officially dismissed its pending claims against Ripple executives, Brad Garlinghouse and Chris Larsen.

Originally, the SEC's claims revolved around allegations that both Garlinghouse and Larsen aided and abetted Ripple in violating Section 5 of the Securities Act of 1933. This specifically pertained to Ripple's "institutional sales" of the XRP cryptocurrency.

No April 2024 trial

As reported by U.Today, an Oct. 3 court order set a trial date for the aforementioned claim. However, the recent dismissal makes the upcoming trial redundant.

The most recent development in the case caught many observers by surprise. "Wow. did not see that coming," ETF analyst James Seyffart tweeted.

Not out of the woods

The dismissal marks a major win for Ripple's executives, but it doesn't conclude the SEC's scrutiny of Ripple Labs.

The SEC's filing indicates an intention to further engage with Ripple in order to determine the appropriate remedies for its purported Section 5 violations related to the institutional sales of the XRP token.