The U.S. Securities and Exchange Commission (SEC) has officially dismissed its pending claims against the top Ripple executives, Brad Garlinghouse and Chris Larsen.
The XRP price has spiked more than 5% on the news.
No April 2024 trial
Originally, the SEC's claims revolved around allegations that both Garlinghouse and Larsen aided and abetted Ripple in violating Section 5 of the Securities Act of 1933. This specifically pertained to Ripple's "institutional sales" of the XRP cryptocurrency.
As reported by U.Today, an Oct. 3 court order set a trial date for the aforementioned claim. However, the recent dismissal makes the upcoming trial redundant.
The most recent development in the case caught many observers by surprise. "Wow. did not see that coming," ETF analyst James Seyffart posted on X.
Not out of the woods
The dismissal marks a major win for Ripple's executives, but it doesn't conclude the SEC's scrutiny of Ripple Labs.
The SEC's filing indicates that the regulator will further engage with Ripple in order to determine the appropriate remedies for the latter's purported Section 5 violations related to the institutional sales of the XRP token.
As reported by U.Today, the SEC's recent motion for an interlocutory appeal in its case against Ripple was denied. However, legal experts believe an appeal is still feasible