Sun. Jun 16th, 2024

Price Action: $XRP Jumps Over 6% As SEC Moves To Dismiss Charges Against Ripple Executives. 

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US securities and exchange commission has moved to dismiss it’s two year long civil suit against Ripple executives. While many see it as good news, it could also be a strategy.

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Lawsuit Dismissed

Lawyers representing the United States Securities and Exchange Commission (SEC) have disclosed their intent to dismiss all claims against Ripple CEO Brad Garlinghouse and executive chair Chris Larsen. 

In a filing made on October 19 in the U.S. District Court for the Southern District of New York, the SEC informed the court that the parties involved in their case against Ripple “have mutually agreed to the dismissal with prejudice”.

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This development suggests that there is no requirement for scheduling an upcoming trial in this specific matter. 

The securities regulator had charged the two executives “for aiding and abetting Defendant Ripple Labs Inc.’s violations … with respect to Ripple’s offers and sales of XRP in ‘Institutional Sales,’”.

The filing has however disclosed that both the SEC and Ripple have intentions to convene and discuss a potential briefing schedule to address the pending issue in the case. This particular issue pertains to determining the appropriate remedies for Ripple’s Section 5 violations in connection with its Institutional Sales of XRP. 

Dismissal a Surrender or a Strategy?

Ripple’s chief legal officer, Stuart Aldeorty, in response, calls it “a surrender by the SEC”. He added further the news makes it “3 consecutive wins for Ripple including the July 13 decision ruling that as a matter of law XRP is NOT a security and the Oct 3 decision denying the SEC’s bid for an interlocutory appeal”

However, Katherine Kirkpatrick, the chief legal officer for Cboe Digital, sees the dismissal from a different perspective. She stated in a post on X, that the agency may have dropped the cases against the individuals as a legal tactic.

(Her post from Twitter)

In her opinion, “This means they can proceed to appeal the Ripple decision much sooner – otherwise they would have had to wait until the conclusion of that trial in the late spring,”.

$Xrp Reacts to the News

The price of $XRP, the native token of Ripple, jumped 6% in response to the news. At the time of writing, the price of $XRP had gone as far as $0.52. But has since retraced to $0.5150 as at the time of writing

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