Ripple CLO Sheds Light on SEC's Decision to Drop XRP Claims

Ripple's Chief Legal Officer (CLO), Stuart Alderoty, has provided insights into the U.S. Securities and Exchange Commission's (SEC) decision to drop charges against Ripple executives Brad Garlinghouse and Chris Larsen after a protracted four-year legal battle.

Focus on Institutional Sales

Alderoty highlighted that the SEC's case primarily hinged on allegations that Ripple's sales of XRP constituted unregistered securities offerings. However, the court's prior ruling clarified that XRP itself is not a security, and the SEC ultimately chose to dismiss the claims against the executives.

Strategic Shift by the SEC

The Ripple CLO suggested that the SEC's decision to drop the charges against Garlinghouse and Larsen was a strategic move. He implied that pursuing the case against the executives became less compelling after the court's partial victory for Ripple regarding programmatic sales of XRP on exchanges.

Implications for Regulatory Clarity

The dismissal of charges against Ripple's executives is viewed as a significant step towards greater regulatory clarity for XRP and the broader cryptocurrency industry in the United States. It reinforces the notion that the manner in which a digital asset is sold is crucial in determining its regulatory status.