Ripple Labs and SEC face off for April 23, 2024 trial

Ripple Labs and SEC face off for April 23, 2024 trial

The ongoing legal skirmish between the SEC and Ripple Labs added another chapter, as Judge Analisa Torres denied the SEC's request for an interlocutory appeal on Oct. 3.

With the appeal motion on the table, both sides gear up for a trial set for April 23, 2024. The decision could change regulatory norms in the crypto industry.

As of press time, Ripple's native cryptocurrency XRP surged 5% to trade at 0.54.

In a July decision, Torres found that certain programmatic sales of Ripple's cryptocurrency XRP did not violate securities laws due to a blind bid process. Other direct sales to institutional buyers were deemed securities, handing the SEC a split verdict.

Looking to overturn the July decision, the SEC extended its appeal to include other distributions where XRP was exchanged for goods or services.

Ripple countered, saying that the requirements needed for interlocutory appeal were not met. The absence of a controlling legal question and the SEC's displeasure with the court's application of the Howey test to most XRP transactions were cited as the two primary reasons.

SEC v. Ripple Labs case could impact other cryptocurrency platforms, such as Binance and Coinbase. The SEC thinks the case's outcome could greatly impact pending lawsuits involving these platforms.

Ripple's attorneys earlier said that if the SEC's appeal was greenlit, they'd launch a counter 'cross-appeal' related to XRP's institutional sales.

The trial will take place on April 23, 2024, at 9 a.m., per the court's order. Both sides are now in a prelims phase, navigating through a calendar that demands meticulous adherence to scheduled milestones.

The parties in the case have until Dec. 4 to submit any motions in limine, with oppositions to any such motions due by Dec. 18. By December, all necessary pretrial filings, including their proposed joint pretrial order, requests to charge, verdict form, and voir dire questions, are due to be submitted by the aforementioned December deadline.

The prelims conference will be held on April 16, 2024. Before this conference, both counsels, including Ripple Labs and SEC representatives, are scheduled to convene in person for a minimum of one hour to discuss potential settlement options.

With the official order signed by Judge Analisa Torres on Oct. 3, Ripple Labs and the SEC are locked into a precise and demanding timeline leading to the trial.

The case continues to attract widespread attention, spotlighting regulatory practices, digital currencies, and the evolving landscape of the financial sector.