Pro-XRP lawyer Fred Rispoli has offered his insights on the recent decision by the U.S. Securities and Exchange Commission (SEC) to drop charges against Ripple executives Chris Larsen and Bradley Garlinghouse. The decision by Judge Analisa Torres officially dismisses the case against the Ripple executives.
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Ripple Execs Cleared of Charges Relating to Institutional Sales of XRP, While Questions Arise About Future Appeals
- Nature of Dropped Charges: Attorney Fred Rispoli has shed light on the specific charges that the SEC dropped. The charges related to the roles played by Larsen and Garlinghouse during Ripple’s institutional sales of XRP, which the court had previously found to constitute an investment contract. This indicates that the aiding and abetting charges against the two executives about programmatic sales of XRP and other distribution categories were automatically dismissed since the court deemed those transactions legal.
As the judge ruled in Ripple's favor on Programmatic Sales and Other Distributions, the claims against BG & CL for those 2 categories automatically died at that point…but could theoretically be revived IF the SEC appeals AND wins on overturning PS and OD #XRP transactions. 2/4
— Fred Rispoli (@freddyriz) October 23, 2023
- Potential Revival of Charges: Attorney Rispoli speculates that the charges against Larsen and Garlinghouse could be revived if the SEC wins an appeal concerning programmatic sales and other distribution categories. However, he emphasizes that the SEC cannot sue the Ripple executives under the institutional sales category, irrespective of the outcome of any potential appeal, as the case was dismissed with prejudice.
- SEC’s Decision Under Scrutiny: Attorney Rispoli expressed doubts about the SEC’s decision to dismiss charges against the Ripple executives under the institutional sales category, suggesting that it may be a strategic move. He believes this might indicate that the SEC is preparing to conclude the case for good.
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…include Institutional Sales in the dismissal? I doubt it. I think this is more proof the SEC is going to–as Water T would say–"crunch the numbers" and wrap this one up for good. 4/4 pic.twitter.com/NjmO4XwwV8
— Fred Rispoli (@freddyriz) October 23, 2023
- SEC’s Possible Appeal: While the SEC has not officially filed an appeal as of now, speculations are rife that the regulatory body may appeal the ruling on programmatic sales and other distributions. The SEC had previously expressed dissatisfaction with the July 13 ruling and sought to file an immediate appeal, which was denied by the court.
- Remedies Stage: The next phase of the case will focus on determining the amount Ripple will be required to pay for violating the law by selling $770 million worth of XRP to institutional investors.
Market Response
- XRP Price Movement: Amidst these legal developments, the price of XRP experienced significant fluctuations. Over the past 24 hours, XRP saw a notable surge from a low of $0.522 to a daily high of $0.557. However, the price retraced below $0.55 as bears continued to target the $0.5042 support level. At the time of writing, XRP was trading at $0.541, reflecting a 3.2% increase over the past 24 hours, according to CoinGecko data.
The decision to drop charges against Ripple executives Chris Larsen and Bradley Garlinghouse appears to be a significant development in the ongoing legal battle between Ripple and the SEC. Pro-XRP lawyer Fred Rispoli’s commentary suggests that the situation is far from settled, with the possibility of future appeals and further legal proceedings. Meanwhile, XRP’s price remains volatile, responding to the latest legal developments. The next phase of the case, the remedies stage, will determine the financial consequences for Ripple regarding its XRP sales to institutional investors.