The SEC will drop its lawsuit against Ripple XRP executives, the commission said on Thursday. In a document sent to New York district judge Analisa Torres, Jorge Tenreiro, an SEC enforcement councilman, says that the regulator is “voluntarily dismissing the case.”
In a direct response to the submission, the Chief Legal Officer of Ripple Stuart Alderoty says that the SEC dropping the lawsuit isn’t a settlement, but a surrender. “The SEC made a serious mistake going after Brad & Chris personally,” Alderoty says in a post on X. “And now, they’ve capitulated, dismissing all charges against our executives. This is not a settlement. This is a surrender by the SEC.”
In the letter, the SEC representative says that the regulator and Ripple officials intend to “meet and confer on a potential briefing schedule.” The SEC is requesting until November 9 to propose a date to the court for this meeting.
Ripple CEO Responds to SEC Lawsuit Drop
Brad Garlinghouse, the CEO of Ripple, calls the decision by SEC another win for Ripple. “Chris and I (in a case involving no claims of fraud or misrepresentations) were targeted by the SEC in a ruthless attempt to personally ruin us and the company so many have worked hard to build for over a decade,” Garlinghouse says.
He adds in the X post, ” The SEC repeatedly kept its eye off the ball while secretly meeting with the likes of SBF – failing again and again to protect US consumers & businesses. How many millions of taxpayer (funds) were wasted?! Feels good to finally be vindicated.”
Previously, the federal court made a decision on July 13 ruling that as a matter of law XRP is NOT a security. Last month on October 3, another decision denied the SEC’s bid for an interlocutory appeal. Now, the regulator’s lawsuit against Ripple’s excecutives is the latest win for Ripple and crypto as a whole.
Other SEC representatives have not yet given public response to the submission of the lawsuit.