Ripple vs. SEC Lawsuit: Ripple Executives Garlinghouse and Larsen Still Facing Legal Claims, Says Former SEC Lawyer
Highlights:
– Former SEC official states that not all claims against Ripple’s top executives have been dropped.
– The U.S. SEC has filed an appeal against XRP sales conducted by Ripple CEO Brad Garlinghouse and Executive Chairman Chris Larsen.
– Legal experts assert that the case against Garlinghouse and Larsen involves a stipulation on dismissal.
– XRP’s price declined following the SEC’s appeal filing.
The ongoing Ripple vs. SEC lawsuit is advancing to the U.S. Second Circuit Court of Appeals after the SEC filed Form C, reinstating securities violation claims against Ripple executives Brad Garlinghouse and Chris Larsen. According to a former SEC lawyer, the existing claims against them still hold up under appeal.
Why the Appeal Against Ripple Executives is Still Valid
The lengthy legal battle between Ripple Labs and the SEC will continue in the U.S. Second Circuit Court of Appeals, which could extend the case by another year. The SEC’s appeal challenges the summary judgment regarding XRP sales by Ripple, its distribution to employees, and sales on exchanges by Garlinghouse and Larsen.
Former SEC lawyer Marc Fagel clarified that while the regulator had dropped charges of aiding and abetting unregistered institutional sales, other allegations against the executives remain active. Another expert, Sherrie, explained that the case against Garlinghouse and Larsen had been conditionally dismissed, based on a stipulation that their individual sales were “programmatic” and not considered securities offerings by the judge. However, if the Appellate Court overturns Judge Torres’ decision, the stipulation could bring Garlinghouse and Larsen back into the case.
Last week, Ripple’s Chief Legal Officer Stuart Alderoty announced that “XRP is not a security,” as the SEC did not appeal this specific ruling. He noted that this outcome has provided greater legal clarity for XRP.
Ripple is expected to submit their Form C for a cross-appeal against the SEC by this Friday.
Impact of the Cross Appeal on XRP Price
Currently, XRP is trading at $0.525, reflecting a 5% decline over the past week, with a 24-hour trading range between $0.512 and $0.531. Despite the price dip, trading volume has risen by 7% in the last 24 hours.
In the derivatives market, sentiment towards XRP remains mixed ahead of Friday’s crypto options expiry. According to Coinglass, total open interest (OI) for XRP futures fell by over 2% in the last 24 hours to 1.40 billion, valued at $743 million.
Despite current volatility, some experts predict a bullish trend for XRP, with expectations of a price rally potentially reaching $16 and even surpassing Ethereum in the future.
