By Ayomide Ogunsakin
After a three year long between the SEC and crypto exchange platform, Ripple Labs, the commission has announced that it will drop its lawsuit against Ripple XRP executives.
In a document delivered to New York district judge Analisa Torres, the presiding judge over the case, an SEC enforcement representative stated that the regulator is “voluntarily dismissing the case.”
Responding directly to the SEC’s submission, the Chief Legal Officer of Ripple Stuart Alderoty described the SEC’s lawsuit drop as not just a settlement, but a surrender.
He stated in a post on X that the SEC had made a serious mistake going after Brad & Chris (Ripple Executives) personally.
“And now, they’ve capitulated, dismissing all charges against our executives. This is not a settlement. This is a surrender by the SEC,” he further asserted.
According to the letter, the SEC regulators and Ripple officials intend to “meet and confer on a potential briefing schedule,” and the commission has requested until November 9th to propose a date to the court for this meeting.
The Ripple CEO, Brad Garlinghouse who was sued by SEC, has also reacted to the news, calling the decision by SEC another win for Ripple.
“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 decade,” Garlinghouse says.
He adds in the X post, “The SEC repeatedly kept its eye off the ball while secretly meeting with the likes of SBF – failing again and again to protect US consumers & businesses. How many millions of taxpayer (funds) were wasted?! Feels good to finally be vindicated.”
Recall that Ripple had previously secured two wins against the SEC.
The first win came on July 13, when the federal court gave a ruling that as a matter of law XRP is NOT a security.
Again on October 3, another ruling held by Judge Annalise Torres denied the SEC’s bid for an interlocutory appeal against the decision.
Hence, this news that the regulators have decided to drop their lawsuit against Ripple executives has sent a large part of the crypto community into a state of jubilation, as the lawsuit drop signifies both a win for Ripple, after 3 long years, and one for the community at large.
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