SEC May Drop Charges Against Ripple Executives Before Legal Proceedings
Date: 2023-10-07 Author: Dima Zakharov Categories: BLOCKCHAIN, CRYPTO PAYMENTS
Dispute and Hopes: SEC vs. Ripple and Possible Outcomes
The civil case initiated by the U.S. Securities and Exchange Commission (SEC) against the cryptocurrency company Ripple and its top executives, Brad Garlinghouse and Chris Larsen, continues to capture the attention of the cryptocurrency community. The start of the legal proceedings is scheduled for April 23, 2024. However, according to the opinion of Yassin Mobarac, the founder of Dizer Capital, before that date, the SEC may withdraw the charges against the Ripple executives.
Anticipation of a Decision: Why the SEC Might Withdraw Charges
Mobarac believes that the SEC may not be interested in a lengthy and complex legal battle that could uncover details of their own activities and potential corruption aspects. Instead, he suggests that the regulator may have more significant plans aimed at creating a certain level of uncertainty in the cryptocurrency industry.
Secrets and Accusations: Basics of the Ripple Case
It is worth recalling that the SEC filed a lawsuit against Ripple in December 2020. Garlinghouse and Larsen were named as defendants in this case. In the lawsuit, the Commission claimed that the company's executives actively promoted the XRP cryptocurrency to fund their business. Additionally, the SEC accused them of conducting personal unregistered sales of XRP tokens totaling approximately $600 million.
SEC's Decision: Consequences for the Market and the Company
The dismissal of charges against Garlinghouse and Larsen could have long-term consequences for Ripple and the cryptocurrency market as a whole. This could mean that the SEC is stepping away from an aggressive stance towards cryptocurrencies and regulation, which, in turn, could promote broader acceptance and use of cryptocurrencies in the future.
Awaiting the SEC's Decision
All that remains is to wait and see what outcome the SEC's case against Ripple will present. Perhaps closer to the trial date, it will become clear whether the SEC will indeed pursue its charges or if the regulatory body will choose a different path. Regardless of the outcome, this case continues to be one of the most intriguing and important events in the world of cryptocurrencies and blockchain.
