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In a turn of events that has captured the attention of the crypto world, Ripple’s top executives have been exonerated of all claims made by the U.S. Securities and Exchange Commission (SEC). This recent victory for Ripple’s CEO, Brad Garlinghouse, and Executive Chairman, Chris Larsen, indicates a shifting tide in the regulatory landscape.
Ripple: A Timeline of Victories
The SEC’s decision to dismiss charges with prejudice marks not just a win, but the third successive victory for Ripple’s executives. This recent exoneration follows the landmark July 2023 judgment which determined that XRP does not inherently qualify as a security. Subsequent to this, the SEC’s bid for an interlocutory appeal in October was turned down.
Garlinghouse reflected on the ordeal, stating, “Chris and I endured unfounded allegations for almost three years. Instead of addressing genuine concerns, the SEC targeted us – champions of a regulated, U.S.-based business. It’s time to move past these baseless claims.”
Ripple vs SEC: The Backstory
It was late December 2020, just before the festive season, when the SEC chose to launch a civil action against Ripple and its key executives. The crux of their argument was that, since 2013, XRP distributions should have been classified and registered as a security. Notably, there were zero claims related to fraudulent activities or misinformation.
The subsequent judgment in July 2023 swung in Ripple’s favor, declaring XRP as non-security. In a final act of retreat, the SEC has now withdrawn with prejudice the allegations against Ripple’s CEO and Chairman, thereby settling all charges against the duo.
Larsen commented on the vindication, saying, “This legal victory is a significant one. The roots and motives behind this lawsuit need to be scrutinized. Many worked tirelessly to establish Ripple, and it’s tragic that we had to counter such an ill-conceived assault.”
The Ripple Effect on Crypto Innovation
The SEC’s endeavors have cast a shadow over the crypto domain, forcing innovation to take refuge offshore. A testament to this is Ripple’s shifting business focus: around 90% of its operations now lie outside the U.S. The same trend is evident in Ripple’s recent hiring patterns, with the majority of new recruits being sourced from international markets in Q3 2023.
Nevertheless, Ripple remains steadfast in its mission to promote judicious crypto regulation within the U.S. On a global scale, the company is committed to fostering productive conversations with key stakeholders to bolster the digital asset industry’s progress.
Looking Ahead
As the dust begins to settle on this chapter of Ripple vs. SEC, the larger implications for the crypto world are becoming clear. Ripple’s perseverance serves as a testament to the enduring spirit of innovation and the importance of clear regulatory guidelines.