Three Wins to Nil Against the SEC

• Ripple and XRP mark their third consecutive legal victory over the US Securities and Exchange Commission (SEC).
• Charges against Ripple’s CEO, Brad Garlinghouse, and Executive Chairman, Chris Larsen, have been dismissed.

SEC vs. Ripple: A Turn of Events

In the unfolding legal tussle between Ripple, its native cryptocurrency XRP, and the US Securities and Exchange Commission (SEC), the blockchain company has emerged triumphant yet again.

The Legal Scoreboard Reveals: Ripple Ahead

The most recent legal development saw the SEC voluntarily relinquishing its allegations against key Ripple personnel. Ripple’s CEO, Brad Garlinghouse, and Executive Chairman, Chris Larsen, can now breathe a sigh of relief, having seen the charges against them withdrawn.

Looking back to December 2020, the SEC initiated a lawsuit against these executives, accusing them of facilitating Ripple in bypassing federal securities laws via its XRP transactions. The primary contention was an alleged unregistered security offering involving XRP.

But the winds seem to have changed direction for Ripple. The anticipated trial for April 2024, which was to weigh the merits of the SEC’s claims, stands cancelled. This judicial reprieve trails two preceding victories for Ripple.

Earlier in the month, the SEC’s attempt to appeal a prior judgment was thwarted. Taking us back to July, a court ruling declared XRP wasn’t a “security” as the SEC had contended. Two legal issues emerged post this judgment, leading the SEC to seek certification for an interlocutory appeal. Yet, both attempts were denied.

Doing the math, Ripple and XRP have netted three legal victories in succession since July, while the SEC’s scoreboard remains empty.

Ripple Leadership Shares Their Stance

The recent victories naturally elicited reactions from Ripple‘s top brass. Brad Garlinghouse, voicing his sentiments on the X platform, took a celebratory tone:

“Today was an even better day. Ripple: 3; SEC: 0.”

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Today was an even better day.
Ripple: 3
SEC: 0

In all seriousness, Chris and I (in a case involving no claims of fraud or misrepresentations) were targeted by the SEC in a ruthless attempt to personally ruin us and the company so many have worked hard to build for over a… https://t.co/YsQxewFnj9

— Brad Garlinghouse (@bgarlinghouse) October 19, 2023

He didn’t stop at just celebrating the win, expressing his discontent over the SEC’s “unlawful” targeting, which he described as a calculated move to undermine the company’s decade-long efforts.

Adding to the dialogue, Stuart Alderoty, Ripple’s Chief Legal Officer, was forthright in his assessment. He suggested that the SEC’s pursuit of the executives was a glaring misstep, one which they could no longer defend, leading to their withdrawal. He was quick to remind the community of Ripple’s string of legal successes, culminating in the most recent victory.

Legal pundits speculate that the SEC’s recent backtracking might set the stage for a potential appeal against the July court determination.