The ongoing legal skirmish between the SEC and Ripple Labs added another chapter on Oct. 3 as judge Analisa Torres denied the SEC's request for an interlocutory appeal.
Both parties have decided to file a motion for a trial on April 23, 2024. The decision could reshape regulatory norms in the cryptocurrency landscape.
Ripple's native cryptocurrency XRP surged 5% to trade at 0.54 yesterday.
In a July 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, however, were deemed securities, handing a split verdict to the SEC.
The SEC has extended its appeal to include other distributions where XRP was exchanged for goods or services.
Ripple countered by claiming 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 main reasons.
The SEC vs. Ripple Labs case could impact other cryptocurrency platforms like Binance and Coinbase. The SEC said the case's outcome could significantly affect pending lawsuits involving these platforms.
Ripple's attorneys, however, 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 begin April 23, 2024, at 9:00 a.m., according to the court order. The two companies are now in prelims preparations, navigating through a schedule that demands meticulous adherence to scheduled milestones.
The parties involved in the case have until Dec. 4 to submit any motions in limine, with oppositions to any such motions due by Dec. 18. By the December 31 deadline, the candidates 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 be held on April 16, 2024. Both firms, including Ripple Labs and SEC representatives, are ordered to convene in person for a minimum of one hour to discuss potential settlement options.
With the 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, exploring regulatory practices, digital currencies, and the evolving landscape of the financial sector.