American blockchain payments firm, Ripple Labs Inc. has announced that the charges levied against CEO Brad Garlinghouse and founder Chris Larsen by the United States Securities and Exchange Commission (SEC) have been dropped.
SEC vs Ripple Execs: Dismissed Without Prejudice
Per the announcement, Ripple Labs said the SEC voted to dismiss the allegations without prejudice. This historic move has been declared a major win for the payments firm which scored an earlier win against the regulator back in July when Judge Analisa Torres declared that the sales of XRP on secondary marketplaces do not constitute an investment contract.
The SEC’s case against Ripple Labs is multifaceted as the markets regulator accused the firm’s executives of masterminding the sales of XRP which it deemed an investment contract. Clearing these charges has been described by the firm as “a stunning capitulation by the government.”
“Today, we are legally vindicated and personally redeemed in our battle against a troubling attempt to abuse the rules in order to advance a political agenda to suffocate crypto in America. It is a travesty that we were forced to defend ourselves from an ill-advised attack that was flawed from the day it was filed,” said Executive Chairman Chris Larsen.
Despite clearing these charges, Ripple confirmed that it will not relent in its efforts to fight for more regulatory clarity in the US.
SEC Continues Losing Streak
While the SEC is known to have scored a number of victories against crypto firms in the past, this year is turning unfavorably for the market regulator.
The first loss against Ripple Labs as it concerns the regulatory status of XRP set the pace for Grayscale Investments to land another victory in its bid to convert the Grayscale Bitcoin Trust (BGTC) product into a full-fledged spot Bitcoin Exchange Traded Fund (ETF).
These victories have formed a very strong precedent that might also vindicate other cryptocurrencies like Cardano (ADA), Solana (SOL), Binance Coin (BNB), and Polygon (MATIC) that are also being targeted by the SEC. Additionally, the Grayscale victory and the regulator’s failure to appeal the ruling have raised hopes that a Bitcoin spot ETF might be closer than expected.
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