In a significant turn of events, the SEC has dropped all charges against Ripple executives CEO Brad Garlinghouse and cofounder Chris Larsen. This unexpected development brings an end to the looming trial, which was scheduled for April 2024, and marks a significant victory for the cryptocurrency industry.
Following the dismissal, speculation looms regarding the next steps for Ripple, the SEC and XRP. Eleanor Terrett of Fox Business has provided insights into the potential trajectory of this legal saga.
Terrett's analysis suggests that while the charges against Garlinghouse and Larsen have been dropped, there could be further litigation in the penalty phase. Ripple, facing penalties related to its $700 million of institutional sales, is expected to engage in a legal battle with the SEC to reduce the imposed penalty.
Legal experts anticipate a fierce fight, as the SEC aims to secure a substantial amount for regulatory validation, says the journalist.
To appeal or not to appeal?
Furthermore, Terrett highlighted a lingering possibility: the SEC's ability to appeal Judge Torres's decision on the "programmatic sales" and "other distributions" of XRP. Although the agency's request for an interlocutory appeal was denied earlier, the recent turn of events might prompt the SEC to appeal after the penalty phase.
Ripple's triumph signifies a significant win not only for the company but also for the broader crypto industry. The dropping of charges against Ripple executives adds another chapter to the growing list of setbacks for the SEC in the crypto space, further fueling the industry's momentum.
Alex Dovbnya
Valeria Blokhina
Vladislav Sopov
