Ripple and the U.S. Securities and Exchange Commission (SEC) have informed the court of their agreement to dismiss the SEC’s ongoing claims against Ripple’s CEO, Brad Garlinghouse, and its executive chairman, Chris Larsen. Both parties are looking to collaborate on establishing a potential schedule for addressing the outstanding matter concerning the institutional sales of XRP.
Ripple and SEC Gear Up for Legal Battle Over Institutional XRP Sales
In a court filing on the evening of October 20, Ripple’s attorney, Jorge Tenreiro, sent a letter to Judge Analisa Torres. He indicated their intention to dismiss charges against the individual defendants voluntarily, Brad Garlinghouse and Chris Larsen. Consequently, this eliminates the necessity for the scheduled trial regarding the SEC’s claim that these executives aided and abetted Ripple in violating securities laws during institutional XRP sales. This action also renders an earlier scheduling order obsolete.
With these developments in mind, Ripple and the SEC are now looking to engage in discussions to establish a potential timeline for addressing the unresolved matter within the ongoing lawsuit. Specifically, Ripple seeks to explore possible remedies for its Section 5 violations about institutional XRP sales.
Additionally, the Securities Act of 1933 mandates that entities must register securities with the SEC before offering them to the public, including institutional investors.
Ripple is proposing November 9 as a suitable date for suggesting a briefing, affording both parties ample time to consider either reaching a settlement or contesting the issues related to institutional XRP sales. Experts emphasise that Ripple must address remaining concerns, including XRP ODL sales, as these are critical elements in the case.
Will SEC File an Appeal?
Amidst the ongoing discussion regarding the SEC’s ability to promptly initiate an appeal against Ripple, prominent XRP advocate and attorney John Deaton emphasised, “An immediate appeal is not on the horizon. The SEC’s decision to not drop the case wasn’t driven by a desire for a swift appeal.”
Furthermore, Fox Business reporter Eleanor Terrett clarified that the SEC cannot initiate an immediate appeal and must await the lawsuit’s final judgment. This implies that the SEC will have to wait until the following year to pursue an appeal.