SEC withdraws lawsuit in court against the founders of Ripple Labs

  • SEC drops lawsuit against Ripple founders
  • He alleges that they reached an agreement in relation to the ongoing dispute
  • Brad Garlinghouse and Chris Larsen expressed their enthusiasm for the measure
  • The news comes after the SEC‘s recent loss against Grayscale in the appeals court
  • It remains to be seen what the SEC will do with the Bitcoin ETF applications awaiting a response.

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Is the US Securities and Exchange Commission (SEC) giving up on its fight against cryptocurrencies?

SEC drops lawsuit against Ripple founders

Everything seems to indicate that the SEC has just dropped the lawsuit filed against Ripple founders Brad Garlinghouse and Chris Larsen, ending a legal dispute that has spanned several years.

The information was published in a document published by the SEC today, which spread quickly through social networks. The letter addressed to Judge Analisa Torres reads:

He also adds that both parties reached an agreement regarding the ongoing process, so there would be no need to attend a hearing originally scheduled for April of next year.

Celebrating the measure

Faced with the surprising measure by the SEC, the reactions were immediate.

The first to express his enthusiasm for what happened was the CEO of Ripple, Brad Garlinghouse, who published an extensive message on his X (Twitter) account where he described the measure as the third victory for the company in the controversial case that spread across several years:

In all seriousness, Chris and I have been attacked by the SEC (in a case that does not involve any allegations of fraud or misrepresentation) in a brutal attempt to personally destroy us and the company that so many people have worked so hard to build. more than a decade. The SEC has repeatedly looked the other way while secretly meeting with companies like SBF, and has repeatedly failed to protect American consumers and businesses. How many millions of taxpayer dollars were wasted?

The Ripple manager closed his message by stating that “it feels good to finally be right.”

For his part, Ripple president Chris Larsen also did the same and commented:

Today, we were legally and personally vindicated in our fight against a disturbing attempt to abuse the rules to advance a political agenda to destroy cryptocurrencies in the United States. It is a tragedy that we are forced to defend ourselves against a malicious attack that has failed since the day it was opened.

He added that it has been abuse on the part of the government to attack Ripple due to the interests of certain political groups, taking the fight against a company that “has worked for so long to build solutions.”

Bad streak for the SEC

The surprise measure by the SEC comes days after another quite striking event, and that is that the regulator also withdrew from the fight against Grayscale in court, by deciding not to appeal the judge’s verdict in favor of the management company. of cryptocurrency-based funds.

Ripple and Grayscale‘s victories against the SEC constitute harsh reputational blows, as critics even within the regulator describe the agency’s clear rejection of cryptocurrencies and any associated products as “unjustified.”

Currently, the SEC has a significant number of applications for Bitcoin ETFs on its hands that must receive an official verdict no later than the beginning of 2024. Analysts and enthusiasts consider that the regulator no longer has valid arguments to reject such proposals, which is why they consider that this financial product will eventually arrive in the coming months.

And in relation to regulations and processes against crypto companies, perhaps the most complicated battle that the SEC is taking on at this time is against Coinbase, since the exchange has denounced with quite compelling evidence that the regulator does not seem to be willing to clarify the current regulations. applicable to cryptocurrencies, understanding that these assets do not comply with the securities laws under which the entity is governed.