Ripple CEO Brad Garlinghouse celebrated the dismissal of the SEC’s lawsuit against him and co-founder Chris Larsen, calling it a “stunning capitulation by the government” and a “landmark SEC surrender”.
He also accused the SEC of targeting him and Larsen in a “ruthless attempt to personally ruin” them and the company, while failing to protect US consumers and businesses from offshore exchanges.
A waste of taxpayer dollars
He claimed that the SEC wasted millions of taxpayer dollars on a case that involved no claims of fraud or misrepresentations. He expressed his relief and gratitude for being vindicated after nearly three years of legal battle. The post made by Garlinghouse on X stated:
Today was an even better day. Ripple: 3 SEC: 0 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. 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 & businesses. How many millions of taxpayer $ were wasted?! Feels good to finally be vindicated.
A landmark ruling
The SEC filed a lawsuit against Ripple, Garlinghouse, and Larsen in December 2020, alleging that they illegally sold unregistered securities worth $1.3 billion in the form of XRP tokens. The SEC also sought to bar them from participating in the digital asset market.
However, in July 2023, a US district judge ruled that XRP is not a security and that Ripple’s sales on public exchanges did not violate the law. The judge also rejected the SEC’s request to appeal the ruling earlier this month. On October 19, 2023, the SEC dropped all charges against Garlinghouse and Larsen with prejudice, meaning they cannot be sued again for the same issue.
A boost for XRP
The news boosted XRP’s price by 8%, making it the fifth-largest cryptocurrency by market capitalization. Ripple also issued a press release, stating that it will continue to work with regulators and policymakers to foster innovation and growth in the crypto industry. Garlinghouse also thanked the XRP community for their support and said he looks forward to closing this chapter once and for all.