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In a landmark decision, the US Securities and Exchange Commission (SEC) has dropped its charges against Ripple's top executives, Chris Larsen and Brad Garlinghouse. This move by the SEC marks a significant victory for Ripple, a leading player in the crypto space. The regulatory body had previously accused the duo of aiding Ripple in violating federal securities laws concerning XRP crypto transactions.
The backdrop to this case is crucial. Ripple has been embroiled in a legal tussle with the SEC over the classification of its XRP token. The central question: Is XRP a security or a currency? The SEC's stance has been that XRP is a security, and therefore, its sale violated US securities laws. Ripple, on the other hand, has vehemently argued against this classification.
Today was an even better day.
— Brad Garlinghouse (@bgarlinghouse) October 19, 2023
Ripple: 3
SEC: 0
In all seriousness, Chris and I (in a case involving no claims of fraud or misrepresentations) were targeted by the SEC in a ruthless attempt to personally ruin us and the company so many have worked hard to build for over a… https://t.co/YsQxewFnj9
Garlinghouse, in response to the charges being dropped, said that the SEC's actions were a "ruthless attempt to personally ruin us and the company." This dismissal marks the third consecutive legal win for Ripple against the SEC. Earlier in July, a judge ruled that the SEC had not conclusively proven that XRP transactions violated securities laws. Furthermore, an appeal by the SEC in October to reverse this decision was denied.
Context & Implications
The broader implications of this case extend beyond Ripple. The crypto industry has been closely watching this lawsuit, as its outcome could set a precedent for how digital assets are regulated in the US. The SEC's decision to drop the charges might indicate a shift in the regulatory landscape, suggesting a more accommodating approach towards digital assets.
Blockhead
However, it's essential to note that while Ripple's executives have seen charges against them dropped, the SEC's case against Ripple Labs continues. The core issue of whether XRP is a security remains unresolved.
The SEC's decision to drop charges against Ripple's executives is a positive step, but the broader question of crypto regulation remains a complex puzzle. As the industry matures, collaboration between regulators and crypto firms will be crucial to strike a balance between innovation and investor protection.
Elsewhere,
- Hedera's Q3 Triumph Over Crypto Blues: While the broader crypto market took a modest dip in Q3, Hedera Network (HBAR) danced to a different tune. The public-permissioned Proof-of-Stake (PoS) blockchain network saw a significant uptick in its ecosystem, Ambcrypto reported, citing Messari data. Notably, its native coin's market cap grew by 8%, even as big players like Bitcoin and Ethereum saw drops. Hedera's revenue also crossed the $1 million mark for the first time, thanks to a 37% quarterly growth in transactions. And while other chains witnessed a decline in NFT trading activity, Hedera's NFT trades surged in Q3.
- DTCC Dives Deeper into Digital Waters with Securrency Acquisition: DTCC, the global financial services industry's mainstay, is making a bold move into the digital realm. They've inked a deal to acquire Securrency, a top-tier developer of digital asset infrastructure. This isn't just a casual fling with blockchain; it's a full-blown commitment. With this acquisition, DTCC aims to bridge traditional industry practices with cutting-edge digital tech, pushing for wider digital asset adoption. Securrency will soon don the moniker "DTCC Digital Assets," and its leadership team will join the DTCC ranks. The future of finance is digital, and DTCC is making sure it's at the forefront of this revolution.
- New York's Legal Eagles Dive into $1B Crypto Fraud Case: The Big Apple's legal machinery is in full swing as New York takes on crypto firms in a massive $1 billion fraud case. The state alleges that Gemini lied to investors about a program it ran with Genesis and the program’s risks. The lawsuit also alleges Genesis, its former CEO Soichiro Moro, the parent company DCG and DCG’s CEO Barry Silbert with defrauding investors and the public by trying to conceal $1.1 billion in losses.
- Magic: The Gathering Creator's Crypto Game Casts a Spell on Epic Game Store: Richard Garfield, the creator of wildly popular trading card game "Magic: The Gathering" is launching "Brawlers," a web3 video game on the Epic Game Store. Co-developed by web3 gaming firm Tyranno Studios, Brawlers focuses on creating titles on the WAX blockchain.
- SK Telecom Rings in a New Era with Crypto Wallet Launch: South Korea's telecom titan SK Telecom is dialing into the crypto space. In partnership with Team Blackbird's CryptoQuant, they're launching a crypto wallet, giving users access to on-chain analysis tools. It's not just about calls and texts anymore; SK Telecom is setting the tone for a crypto-connected future.
