On October 19, the US Securities and Exchange Commission (SEC) dismissed all its claims against Ripple’s CEO, Brad Garlinghouse, and co-founder, Chris Larsen. This dismissal marked a significant victory for Ripple and the crypto industry. Larsen responded to the SEC’s actions by calling them a “rogue administrative state.” He criticized the Commission’s baseless claims and emphasized the need to hold them accountable for their actions.
Larsen also highlighted how the SEC’s actions had negatively impacted the country’s global standing as the “home for innovation.” He pointed out that many jobs in the crypto industry had been forced to move overseas due to the regulatory uncertainty and chaos created by the SEC’s misguided quest for power. Ripple echoed these sentiments in a press release, stating that nearly 90% of its business is conducted outside the US.
The dismissal of the claims against Garlinghouse and Larsen represents a resounding victory for Ripple and the crypto industry. The SEC voluntarily chose to dismiss the claims with prejudice, meaning they cannot bring similar actions against them in the future. This dismissal also indicates that the SEC has adopted a view that XRP is not a security in itself, aligning with Judge Analisa Torres’ previous ruling.
Reacting to the dismissal, Ripple’s Chief Legal Officer, Stuart Alderoty, criticized the SEC for going after Garlinghouse and Larsen personally. He characterized the SEC’s actions as a “surrender” rather than a settlement. This dismissal could be attributed, in part, to the ongoing ETH Gate saga, particularly the controversy surrounding Hinman’s speech and emails. If the case had gone to trial, Hinman might have been called to testify, potentially damaging the SEC’s credibility.
Related Post
Pro-XRP legal experts, such as John Deaton and Fred Rispoli, had predicted the SEC’s reluctance to proceed to trial with Ripple’s executives. They speculated that Hinman’s potential testimony could undermine the SEC’s case and credibility. Ultimately, the SEC’s decision to dismiss the claims reflects the growing scrutiny and criticism the regulator faces for its handling of the crypto industry.
The SEC’s actions have had a significant impact on Ripple and the crypto community. The regulatory uncertainty and chaos created by the SEC’s actions have driven innovation offshore, with many crypto companies expanding their operations outside the US. Ripple, for example, conducts the majority of its business outside the country.
In conclusion, the dismissal of the SEC’s claims against Ripple’s CEO and co-founder is a significant victory for the crypto industry. It highlights the need to hold regulatory bodies accountable for their actions and underscores the detrimental effects of regulatory uncertainty on innovation. Moving forward, the SEC will now focus solely on institutional sales, as ruled by Judge Analisa Torres. The dismissal serves as a reminder of the importance of clear and fair regulations that foster innovation and growth in the crypto industry.
