Blockchain entity Ripple has achieved another legal triumph in its ongoing dispute with the US Securities and Exchange Commission (SEC), as detailed in a court document from Wednesday. The SEC has withdrawn allegations against Ripple CEO Brad Garlinghouse and Executive Chairman Chris Larsen, who were previously accused of aiding the company in breaching federal securities laws. The charges were linked to transactions involving Ripple's native token, XRP.
The withdrawal of these charges led to the cancellation of a trial that was set for next year, marking yet another legal success for Ripple in its ongoing lawsuit. This development follows a significant victory for Ripple in July when it was determined that the company had not violated securities laws by making XRP available on exchanges for retail customers. Instead, only direct sales to institutional investors were deemed violations.
The SEC initially indicted Ripple in 2020 for conducting a $1.3 billion unregistered securities offering related to its XRP token. Despite this pending case, Ripple has been registering consistent victories. Garlinghouse announced this latest win on Social Media Platform X, critiquing the SEC's case management approach.
Notably, Judge Analisa Torres ruled in July that Ripple hadn't infringed upon securities laws by offering XRP to retail investors. An appeal from the SEC against this ruling was dismissed earlier this month, further solidifying Ripple's position.
Garlinghouse responded to the dropped charges by criticizing the SEC as a rogue regulator with a political agenda and accusing them of baseless allegations while ignoring criminals stealing customer funds. He also underscored the profound impact these developments have on the digital asset ecosystem.
Despite these victories for Ripple, the SEC will continue its claims against the company. Reports suggest that Ripple and the SEC plan to discuss future legal remedies for Ripple's Section 5 violations, which involve selling XRP to institutional investors. In response to these ongoing legal challenges, most of Ripple's business has now moved offshore, including exchanges.
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