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SEC Drops Major Charges Against Ripple Executives

In an unexpected turn of events, The United States Securities and Exchange Commission presents a voluntary dismissal of the charges against Ripple CEO Brad Garlinghouse and Executive Chairman Chris Larsen, who were accused of violating the securities laws with the sales of XRP tokens. The underlying case against Ripple, nevertheless, remains ongoing.

On Thursday, the SEC voluntarily dismissed its charges against Ripple CEO Brad Garlinghouse and Executive Chairman Chris Larsen, initially accusing them of violating securities laws through sales of the XRP token. This decision is viewed by Ripple and the broader crypto community as a “stunning capitulation” and is described as “a surrender by the SEC.”

Ripple’s defense in this legal battle garnered attention and support from significant entities in the crypto industry, such as American crypto exchange Coinbase. Many see the case as pivotal, potentially shaping the future of crypto regulation in the US. Following the dismissal news, the XRP token’s price witnessed a roughly 6.5% increase, according to CoinMarketCap.

XRP 24H Chart – Source: CoinMarketCap

The initial charges against Ripple and its executives were levied at the close of 2020. They were accused of offering and distributing the XRP token against securities regulations. By July, however, a federal judge favored Ripple, clarifying that XRP “is not necessarily a security on its face.” This assertion meant that Ripple’s sales of the XRP token were not securities transactions on exchanges.

Though the SEC dropped the individual charges, their broader case against Ripple persists, with a verdict anticipated next spring. The July ruling did find that XRP sales to institutional investors amounted to illegally unregistered securities offerings, implying Ripple’s legal challenges are far from concluded. Yet, these developments are seen as optimistic signs for the crypto sector.

Ripple Executive Chairman Chris Larsen expressed frustration over the SEC’s approach, stating,

“It is a travesty that we were forced to defend ourselves from an ill-advised attack that was flawed from the outset.”

His sentiment underscores the ongoing tension between Ripple and the SEC.

While the recent dismissals mark significant victories for Ripple, the overall landscape of crypto regulation in the United States remains uncertain. The SEC is currently engaged in litigation against other major crypto industry players, including Coinbase, Binance, and Tron, which further underscores the regulatory challenges faced by the crypto industry.


Greetings! My name is JP, I am based in the US and I am proud to be an author for Krypto Channel. Our news media company is committed to making crypto accessible to everyone, and my area of focus is on the entertainment and lifestyle side of things. Through my articles, I highlight how individuals and businesses are utilizing cryptocurrency in hotels, real estate, boats, cars, watches, and jewelry, and showcase the impressive rate of adoption around the world. My content includes both written articles and video features that take a deep dive into the world of crypto. I conduct interviews with prominent figures in the industry and provide viewers with an insider's look at the latest trends and innovations. As someone who is passionate about the transformative power of crypto, I am excited to be a part of Krypto Channel. Together, we can explore the amazing world of cryptocurrency and all the ways in which it is changing the way we live and work.
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