XRP Price Surges After U.S. SEC Clears Ripple Executives of Aiding and Abetting Charges
The U.S. Securities and Exchange Commission (SEC) has decided to dismiss the aiding and abetting charges against Ripple's senior executives.
The U.S. Securities and Exchange Commission (SEC) has formally dropped the charges against Ripple CEO Brad Garlinghouse and co-founder Chris Larsen, as stated in a letter to Judge Analisa Torres. These charges were initially linked to the SEC's 2020 lawsuit, alleging that Ripple had issued XRP as an unregistered security. A court ruling in July determined that Ripple's sales of XRP were not classified as securities transactions.
In response to the SEC's decision, Ripple issued a press release characterizing it as a "stunning capitulation" by the U.S. government. Brad Garlinghouse expressed his frustration with the regulatory process, stating that he and Chris Larsen had been subject to unfounded allegations by a regulatory body with a perceived political agenda. He further noted the SEC's priorities, suggesting they should focus on combating illicit activities on offshore exchanges rather than targeting legitimate businesses and entrepreneurs in the United States.
Ripple also highlighted the impact of regulatory uncertainty on the cryptocurrency industry, stating that 90% of its business now operates outside of the U.S. due to the confusion created by the SEC.
Chris Larsen, echoing similar sentiments, referred to the dropped charges as legal vindication against the SEC's political agenda and an ill-advised lawsuit. He questioned the origin and motivation of the lawsuit, suggesting it was driven by politically connected special interests with conflicts of interest.
Following this development, the price of XRP increased by 7% and was trading at $0.52 at the time of the report.
Oct 24, 2023