All news is rigorously fact-checked and reviewed by leading blockchain experts and seasoned industry insiders.
- Ripple succeeds as SEC’s appeal request is denied.
- Main trial between Ripple and SEC scheduled for April 23, 2024.
Ripple Moves Forward, Defying the SEC’s Appeal
Ripple, a prominent name in the crypto sector, has bagged another success in its ongoing legal face-off against the U.S. Securities and Exchange Commission (SEC). Judge Analisa Torres recently ruled against the SEC’s motion, stating,
“The SEC’s motion for certification of interlocutory appeal is denied, and the SEC’s request for a stay is also dismissed.”
This triumph implies that the lawsuit will proceed without any further delays, contrary to the SEC’s earlier wishes. The SEC had previously pleaded for the court to halt any remedies litigation and pretrial procedures during its interlocutory certification appeal.
Key Dates to Watch
Judge Torres has outlined the significant milestones for the Ripple vs. SEC saga. As of now, the trial is programmed to commence at 9:00 a.m. on April 23, 2024. Furthermore, by December 4, 2023, all concerned parties are expected to present their motions in limine, finalize all obligatory pretrial filings, and introduce the required documentary exhibits to the court. Oppositions to the submitted motions should be presented by December 18, 2023.
In addition to this, a conclusive pretrial conference is on the agenda for April 16, 2024, at 2:00 p.m. Notably, before this conference unfolds, it is imperative for the counsel representing both Ripple and the SEC, along with the primary parties, to convene in person for a minimum of an hour, aiming to negotiate a potential settlement.
Brief Recap of the Ripple-SEC Confrontation
To provide context, the SEC officially charged Ripple and its executives in December 2020. The accusation centered on the illicit proposal and sale of securities, contradicting Section 5 of the Securities Act. Key Ripple figures, Chris Larsen and Brad Garlinghouse, were alleged to have actively supported Ripple’s Section 5 violations.
However, by July 13, 2023, a twist in the tale occurred when the court partially approved and partially denied the entities’ summary judgment cross-motions. The court’s evaluation discerned that while Ripple‘s institutional sales were indeed offers or sales of investment contracts, its programmatic sales and other distributions stood exempt.
This scrutiny also clarified that Larsen and Garlinghouse’s “individual sales” did not classify as offers or sales of investment contracts, mirroring the rationale behind Ripple‘s programmatic sale evaluation. Nevertheless, the court discarded the defendant’s pleas based on due process and also negated the SEC’s motion for a summary judgment against the two Ripple executives.
