Today's Decision Is Another Victory For Ripple After Three Years Of Misguided SEC Scrutiny
SAN FRANCISCO--(BUSINESS WIRE)--Ripple, the leader in enterprise blockchain and crypto solutions, announced today that CEO Brad Garlinghouse and Executive Chairman Chris Larsen were cleared of all claims brought against them by the U.S. Securities and Exchange Commission (SEC). The SEC voted to dismiss charges with prejudice - a stunning capitulation by the government.
This victory is the third consecutive triumph for Garlinghouse, Larsen, and Ripple, coming on the heels of the July 2023 ruling that declared "XRP is not, in and of itself a security" and a subsequent October decision to deny the SEC's request for an interlocutory appeal.
"For nearly three years, Chris and I have been the subject of baseless allegations from a rogue regulator with a political agenda," said Ripple CEO Brad Garlinghouse. "Instead of looking for the criminals stealing customer funds on offshore exchanges that were courting political favor, the SEC went after the good guys - along with our entire company of innovators and entrepreneurs - who are building a regulated business based in the U.S. We look forward to the day this chapter is closed once and for all, now that the SEC has dropped the curtain on their absurd theatrics against Chris and me."
On December 22, 2020, days before Christmas and as the then SEC leadership was walking out the revolving door to take lucrative jobs in the private sector, the SEC filed a civil action against Ripple and two of its executives, alleging that beginning in 2013, distributions of the digital asset XRP should have been registered as a security. There were no allegations of fraud or any misrepresentations. In July 2023, the Court delivered a victory to Ripple, ruling that XRP is not a security. The SEC then tried to appeal the Court’s ruling and that effort failed. And today, in a capitulation, the SEC dismissed with prejudice the claims against Ripple’s CEO and Chairman that were scheduled for trial next year. This resolves all charges against these executives.
"Today, we are legally vindicated and personally redeemed in our battle against a troubling attempt to abuse the rules in order to advance a political agenda to suffocate crypto in America. 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," said Executive Chairman Chris Larsen. "While justice ultimately prevailed, the government’s actions that led to this point raise questions about the origin, and motivation of this lawsuit. It is an abuse by the administrative state that politically connected special interests, with clear and proven conflicts of interest, were able to drag our names through the mud in an attempt to ruin us personally and destroy a company so many have worked so hard, for so long to build.”
Due to the regulatory uncertainty and chaos created by the SEC's misguided quest for power, crypto innovation is being driven offshore. Today, nearly 90% of Ripple's business is outside the U.S. and hiring remains focused in major international markets. In Q3 2023, nearly 90% of Ripple hires were not in America - and open roles reflect the same damage to the crypto ecosystem.
Despite the headwinds, Ripple's pursuit of sound crypto regulation in the U.S. is far from concluded. Globally, Ripple continues to pursue active dialogue with policymakers and regulators to drive responsible innovation within the digital assets industry.
Ripple is the leader in enterprise blockchain and crypto solutions, transforming how the world moves, manages and tokenizes value. Ripple’s business solutions are faster, more transparent, and more cost effective - solving inefficiencies that have long defined the status quo. And together with partners and the larger developer community, we identify use cases where crypto technology will inspire new business models and create opportunity for more people. With every solution, we’re realizing a more sustainable global economy and planet - increasing access to inclusive and scalable financial systems while leveraging carbon neutral blockchain technology and a green digital asset, XRP. This is how we deliver on our mission to build crypto solutions for a world without economic borders.