Ripple and SEC legal skirmish ends as Judge denies appeal

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Ripple and SEC legal skirmish ends as Judge denies appeal

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

The appeal motion has been voted off the table, and both parties are gearing up for a trial set for April 23, 2024. The decision could reshape regulatory norms in the crypto world.

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

In a July court ruling, 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, a split decision to the SEC.

The SEC enlarged its appeal to include other distributions where XRP was exchanged for goods or services.

Ripple countered by asserting that the conditions 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 among the two primary reasons they cited.

The SEC vs. Ripple Labs case could impact other cryptocurrency platforms like Binance and Coinbase. The SEC thinks the outcome of the case may significantly affect pending lawsuits involving these platforms.

Ripple's attorneys, however, 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 begin April 23, 2024, at 9:00 a.m. on April 23,-2024, according to the court's order. Both parties are now engulfed in pretrial preparations, navigating through a schedule that demands meticulous adherence to scheduled milestones.

The parties involved in the case have until Dec. 4 to submit all motions in limine, with oppositions to any such motions due by Dec. 18. By December 30th, they must submit all necessary pretrial filings, including their proposed joint pretrial order, requests to charge, verdict form, and voir dire questions, by the aforementioned December deadline.

The final pretrial conference will take place on April 16, 2024. prior to this conference, both counsels, including SEC attorneys and Ripple Labs, are ordered 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.

As the case progresses, it continues to draw substantial attention, highlighting regulatory practices, digital currencies, and the changing landscape of the financial sector.