The US Securities and Exchange Commission has dropped its charges against executives from Ripple Labs, including CEO Bradley Garlinghouse and co-founder Christian Larsen.

In a letter to Judge Annalisa Torres, the plaintiff, which is the US SEC, “respectfully notified the court of the stipulated dismissal of the SEC’s pending claims against defendants, Christian Larsen and Bradley Garlinghous.”

The regulator had levied charges against the Ripple duo, alleging that they had “aided and abetted” Ripple’s violations of US securities laws when they sold XRP to institutional clients.

The commission doubled down on the charges following the July 13 determination by Judge Torres that XRP was only considered a security when sold to institutional clients. This signified a landmark win for Ripple, sending XRP price up 70%.

Based on the announcement, the dismissal is totally voluntary, obviating “the need for the scheduled trial,” while at the same time mooting the October 3 scheduling order.

With this decision, the commission will meet Ripple executives for further deliberations before involving the court.

Ripple chief legal officer Stuart Alderoty has called the move a capitulation and “surrender”  by the SEC. Garlinghouse on the other hand says the commission targeted them in a ruthless attempt to personally ruin us and the company

For clarity, this means there will not be a trial in April. It is also worth mentioning that the SEC could still appeal Judge Torres’s decision concerning the programmatic sales and other distributions of XRP.

Judge Torres had declined the SEC’s request for interlocutory appeal on October 3. She said the commission would have to wait until the trial concludes.

Given that there will not be a trial, the commission reserves the right to appeal following the penalty phase.

Meanwhile, lawyers anticipate a bit more litigation between Ripple and the SEC, according to Fox Business’ Eleanor Terrett, hence the penalty phase.  This is concerning the appropriate penalty for the sale of more than $700 million worth of XRP in institutional sales.

According to legal experts, Ripple could negotiate a reduction of the penalty, although the SEC may insist on a significant amount for bragging rights. With this, “a big fight” could follow. 

Ripple IPO

It comes after rumors on October 17 about Ripple’s IPO, with cryptocurrency influencer Alex Cobb raising the question in a post on Crypto X. Based on the post, Ripple was in the process of bringing in a “Shareholder Communications Senior Manager,” which is an important role when a company plans for listing.

Garlinghouse had hinted at the same in 2018, indicating that Ripple would explore the possibility of going public upon the successful conclusion of its ongoing lawsuit with the SEC.

The news could strengthen Ripple's plans with the initial public offering (IPO). 

Around the news, Ripple price has peaked 9% to record an intra-day high of $0.52, with CoinMarketCap data showing a 45% increase in 24-hour trading volume. 

XRP/USDT 1-day chart


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Dogecoin Price Forecast: DOGE bears remain strong despite Elon Musk’s endorsement

Dogecoin Price Forecast: DOGE bears remain strong despite Elon Musk’s endorsement

Dogecoin extends its decline, trading around $0.23 on Monday after falling 8.55% last week. Coinglass’ long-to-short ratio for DOGE reads below one, indicating more traders are betting for a correction while the technical outlook projects a pullback toward the $0.20 level. 

More Dogecoin News
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP momentum indicators show bearish signs

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP momentum indicators show bearish signs

Bitcoin price has been consolidating between $94,000 and $100,000 since early February. Ethereum price trades around $2,700 on Monday after rallying almost 6% last week. XRP faces rejection from its daily resistance level at $2.72, hinting at a downleg ahead.

More Cryptocurrencies News
Bybit's $1.4 billion hack traced to Lazarus Group: ZachXBT

Bybit's $1.4 billion hack traced to Lazarus Group: ZachXBT

Crypto investigator ZachXBT linked the $1.44 billion hack of crypto exchange Bybit on Friday to the infamous Lazarus Group, which has been allegedly responsible for some of the top attacks on digital asset platforms.

More Cryptocurrencies News
Crypto Today: Arkham discovers Bybit hackers wallets as BTC, ETH and top 20 altcoins lose $75B

Crypto Today: Arkham discovers Bybit hackers wallets as BTC, ETH and top 20 altcoins lose $75B

Bitcoin started the day on a positive note, rising as high as $99,495 before news of the Bybit hack triggered a 4% reversal to $96,200 at press time on Friday.

More Cryptocurrencies News
Bitcoin: BTC demand and liquidity conditions remain weak

Bitcoin: BTC demand and liquidity conditions remain weak

Bitcoin price has been consolidating between $94,000 and $100,000 since early February, hovering around $98,000 at the time of writing on Friday. Despite this consolidation, US Bitcoin spot ETFs data recorded a total net outflow of $489.60 million until Thursday, hinting signs of weakness among institutional investors. 

Read full analysis
The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Read More

BTC

ETH

XRP