Ripple Means Business: SEC Dismisses Lawsuit Against Brad Garlinghouse and Chris Larsen
On October 19, 2023, the crypto community celebrated a significant victory when the US Securities and Exchange Commission (SEC) dismissed the lawsuit against Ripple’s CEO, Brad Garlinghouse, and executive chairman, Chris Larsen. This ruling was a major relief for Ripple, which has been facing this legal battle since December 2020.
In a tweet posted by Garlinghouse, he celebrated the dismissal and claimed that the SEC targeted them to destroy both their reputation and Ripple. Garlinghouse said, "Chris and I 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. 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 and businesses."
Garlinghouse also questioned how much taxpayer money was wasted by the SEC in the case against Ripple. He added that this victory against the SEC feels vindicating, particularly since the lawsuit did not contain any fraud or misrepresentation allegations against them.
Chris Larsen, in his tweet, shared his thoughts about the consequences of this lawsuit on the US's standing in global innovation. He said, "The last three years, we've seen a rogue administrative state that needs to be held accountable for its actions, not just an investigation into the conflicts of interests that led to these baseless claims, but how the US actively demolished its global standing as the home for innovation, with thousands of jobs moving overseas. Enough is enough."
The SEC had accused Garlinghouse and Larsen of conducting unregistered securities offerings worth over $1.3 billion. Still, this ruling dismisses the SEC's claims against Ripple's leadership. While the case has not been resolved entirely yet, it represents a crucial turning point for Ripple's legal situation.
Furthermore, the dismissal has provided a boost for Ripple's XRP, which experienced an increase of almost 20% immediately following the news. Overall, this decision could serve as a positive indicator for the crypto community, as the SEC's rigorous and controversial crackdown on crypto may begin to lessen in intensity.
In conclusion, the dismissal of the lawsuit against Brad Garlinghouse and Chris Larsen is a welcome outcome for Ripple and the wider crypto community. However, there is still a long way to go before the company can achieve complete victory.
