SEC Withdraws Charges Against Ripple CEO and Co-Founder, XRP Gains 8% in Response

Ripple Scores Third Consecutive Legal Triumph

The US Securities and Exchange Commission (SEC) has opted to withdraw its charges against Ripple CEO Brad Garlinghouse and co-founder Chris Larsen. The decision, outlined in a recent court filing in New York, marks a significant shift in the legal battle that has been ongoing since the SEC's lawsuit in December 2020. the trial originally scheduled for April 2024 is also now canceled.

The SEC explicitly mentioned in court papers that it is dropping claims related to Garlinghouse and Larsen's alleged involvement in the sales of XRP, which had earlier been deemed as unregistered sales of securities. 

The recent withdrawal of charges against the Ripple executives adds to a series of legal victories for the company. Earlier this year, Judge Analisa Torres ruled that Ripple's sales and distributions of XRP did not amount to the sale of securities. This ruling was followed by another win for Ripple in October, as Judge Torres denied the SEC's attempt for an interlocutory appeal against the initial decision.

Ripple's Chief Legal Officer, Stuart Alderoty, emphasized the significance of this move by stating, "This is not a settlement. This is a surrender by the SEC," highlighting the weight of the decision in favor of Ripple. 

In response to the latest turn of events, Ripple CEO Brad Garlinghouse expressed his relief, stating, 

"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 decade." 

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Market Response and Future Implications

The market response to the news has been positive for Ripple's native cryptocurrency, XRP, which has surged by 8% in the aftermath of the SEC's withdrawal of charges. According to CoinMarketCap, XRP is trading at $0.5151, representing a 7.28% increase in the last 24 hours.

However, it's important to note that despite this significant development, the SEC's charges related to the offer and sale of XRP still persist, potentially leaving the door open for further legal action.