- Ripple executives have hired prominent attorneys to dismiss SEC charges.
- Both Ripple and the SEC have filed appeals, prolonging the legal battle.
- The outcome could significantly impact XRP’s future.
The ongoing legal tussle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has escalated to new heights. Ripple’s top executives, CEO Brad Garlinghouse and Executive Chairman Chris Larsen , have brought in prominent attorneys to dismiss the charges against them.
This strategic move comes as both parties file appeals, signaling that the courtroom showdown is far from over. These developments carry significant weight, not just for Ripple and XRP but for the entire cryptocurrency market. So, what are the latest moves in this high-stakes legal drama, and what could they mean for investors and the crypto industry?
Ripple Executives Seek to Dismiss Charges in SEC Lawsuit
Brad Garlinghouse and Chris Larsen are intensifying their defense against the SEC’s allegations. They’ve enlisted the expertise of Cleary Gottlieb partner Matthew Solomon and attorney John Deaton, who is well-known for representing XRP holders. Both are listed as non-admitted attorneys, indicating their involvement will be limited but tactically significant.
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A recent court filing revealed that the law firm Paul, Weiss, Rifkind, Wharton & Garrison no longer represents Chris Larsen. Coincidentally, the appeals court sent a notice to Larsen for failing to submit a notice of appearance.
Larsen will now have the same legal team that successfully secured the dismissal of all charges against Garlinghouse in the initial case. This consolidation suggests a unified front in Ripple’s legal strategy.
Their legal team secured a significant victory by getting the court to dismiss the charges against Garlinghouse. Ripple is strengthening its position against the SEC’s claims by bringing Larsen under the same legal umbrella and arguing that these allegations are unfounded and detrimental to the crypto industry’s growth.
Appeals and Counter-Appeals Shape Ripple vs SEC
The SEC isn’t backing down, either. The agency has filed an appeal that includes allegations of securities law violations related to XRP sales by Ripple and its executives. The agency maintains that Ripple’s sale of XRP constitutes an unregistered securities offering, a claim Ripple vehemently denies.
In response, Ripple has filed a cross-appeal , challenging the SEC’s assertions on multiple fronts. They question whether an “investment contract” must involve a formal contract and whether profits depend on the seller’s activities. Ripple is also reviving the ‘fair notice’ defense, claiming the SEC failed to provide adequate notice that it would consider XRP a security.
The legal back-and-forth is expected to significantly prolong the case. The SEC has requested the court to set January 15, 2025, as the deadline for its principal brief regarding the appeals. Former SEC lawyer Marc Fagel clarified that while the SEC dropped aiding and abetting charges on Ripple’s unregistered institutional sales, other claims against the executives remain active.
The extended timeline and the complexities of the appeals could delay potential regulatory clarity for the cryptocurrency market. Uncertainty leaves investors in a state that may impact market sentiment and XRP’s price performance in the coming months.
On the Flipside
- The prolonged legal battle adds uncertainty for XRP investors and the crypto market.
- Not all charges against the executives remain dropped, keeping legal risks alive.
- Delays could hinder the establishment of clear regulatory guidelines for cryptocurrencies.
Why This Matters
The intensified legal efforts by Ripple’s executives to dismiss SEC charges could significantly alter the course of the lawsuit, potentially leading to a favorable outcome for Ripple and XRP holders. A dismissal might restore investor confidence in XRP and set a precedent for other crypto companies facing regulatory challenges.
To learn more about the SEC delaying Ripple’s appeal to 2025 and Ripple’s strategy in the lawsuit, read here:
SEC Delays Ripple Appeal to 2025—Experts Call It “Paperwork”
To learn more about Ripple’s recent XRP transfers and the potential impact of the transfers on XRP’s price, read here:
Why Ripple Is Moving $109M in XRP as SEC Case Drags On
