The U.S. Securities and Exchange Commission (SEC) will no longer pursue claims that Ripple’s CEO Brad Garlinghouse or Executive Chairman Chris Larsen aided and abetted the company in violating federal securities laws, canceling a trial scheduled for next year and giving the crypto company another victory in the agency’s long-running suit against it.
According to a filing Thursday afternoon, the parties agreed to voluntarily dismiss the suit against the two executives with prejudice, meaning it cannot be filed again. The SEC will continue pursuing damages against Ripple, the filing said.
Ripple won a major – if partial – victory in July, when the judge overseeing the case ruled that the company had not violated federal securities laws in making XRP available to retail investors by putting it on exchanges. In the same ruling, Judge Analisa Torres said the company had violated federal securities law in selling XRP directly to institutional investors.
It’s this second part where the SEC and Ripple will continue discussions, Thursday’s filing said.
“The SEC and Ripple intend to meet and confer on a potential briefing schedule with respect to the pending issue in the case—what remedies are proper against Ripple for its Section 5 violations with respect to its Institutional Sales of XRP,” the filing said.