SEC drops lawsuits against Ripple boss and co-founder - An astonishing move with unclear reasons.

SEC drops lawsuits against Ripple boss and co-founder - An astonishing move with unclear reasons.

According to a report by en.cointelegraph.com The US Securities and Exchange Commission's lawyers have announced that they are dropping their lawsuits against Ripple boss Brad Garlinghouse and Ripple co-founder Chris Larsen. The decision is being described by Ripple and its executives as “SEC capitulation.”

In December 2020, the SEC filed lawsuits against Ripple, Garlinghouse and Larsen, accusing them of unlawfully selling the company's proprietary cryptocurrency XRP. However, in July of this year, a federal judge ruled that XRP is not a security when sold to retail investors. Nevertheless, the trial against Ripple was scheduled for April 2024.

The exact reasons for the SEC's withdrawal of the lawsuit against Garlinghouse and Larsen are unclear, but some speculate that it could indicate that the SEC plans to appeal the ruling regarding XRP's classification. The SEC's decision could have far-reaching implications for the Ripple market and the crypto industry in general.

Additional SEC proceedings are pending against high-profile figures in the crypto industry, such as Alex Mashinsky of Celsius and Sam Bankman-Fried of FTX. The decisions in these cases could also have an impact on the market.