In a dramatic U-turn on its allegations that Ripple CEO Brad Garlinghouse and Executive Chairman Chris Larsen — alongside the company — had run afoul of securities law with the sale of XRP tokens on public exchanges, the US securities regulator has dropped charges against both executives. The development comes amid reports that Ripple is eyeing an <a href="https://news.todayq.com/a-new-job-opening-at-ripple-fuels-speculation-about-a-looming-ipo/" rel="noopener noreferrer nofollow">initial public offering </a>(IPO).&nbsp; Ripple is not completely out of the woods 
While the US Securities and Exchange Commission (SEC) will no longer be breathing down the neck of Ripple’s execs, the regulator does not plan on dismissing its charges against the company itself. Make of that what you will.
Ripple’s reaction to the news, by and large, has been positive. In apress release Thursday, the company lauded the decision, calling it a “landmark SEC surrender” and a “stunning capitulation by the government.” How did it start? 
The SEC sued Garlinghouse, Larsen, and Ripple back in 2020, alleging they violated securities laws in how they made available the XRP token to retail traders on crypto exchanges. In July, Ripple secured a thumping victory in its legal battle with the SEC, with a federal judge ruling that the XRP token is “not necessarily a security on its face” — and that Ripple’s programmatic offers and sales on crypto exchanges were not securities.
Earlier this month, the SEC was dealt with another blow, with the same judge <a href="https://news.todayq.com/legal-victory-for-ripple-as-judge-denies-secs-motion-to-appeal/" rel="noopener noreferrer nofollow">rejecting the regulator’s motion</a> for an interlocutory appeal.&nbsp;
“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. While justice ultimately prevailed, the government’s actions that led to this point raise questions about the origin and motivation of this lawsuit, said Chris Larsen, Executive Chairman of Ripple Labs. The future of crypto in America hinges on SEC-Ripple legal battle 
The reason behind the SEC’s sudden change of heart is not yet known, but it may have something to do with the agency’s consecutive court losses against Ripple. That said, the future of cryptocurrency in the US now hinges on the SEC’s lawsuit against Ripple, which the regulator is still pursuing. Perhaps that is why several big names in the crypto industry, including crypto exchange Coinbase, have extended their support to Ripple.&nbsp;
The market sentiment is sanguine in the wake of Ripple’s string of court victories — the global crypto market grew by $73.5 billion in hours following <a href="https://news.todayq.com/xrp-gives-away-all-post-sec-lawsuit-victory-gains-succumbs-to-market-pressures/" rel="noopener noreferrer nofollow">Ripple’s partial win</a> in July — but the company, and the crypto industry as a whole, is not out of hot waters yet.&nbsp;
In July, US District Judge Analisa Torres observed that Ripple’s sale of XRP tokens to institutional investors did violate securities law. Moreover, the <a href="https://news.todayq.com/us-sec-slams-a-lawsuit-on-coinbase-months-after-the-wells-notice/" rel="noopener noreferrer nofollow">SEC has filed lawsuits</a> against several major crypto companies, including Binance, Coinbase, and Genesis.&nbsp;
© Todayq News

SEC makes U-turn on charges against Ripple execs, dismisses lawsuit

Todayq News

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