- Trial for the US SEC’s lawsuit against Ripple’s XRP is slated for April 23, 2024.
- Judge Analisa Torres recently declined the SEC’s request for an interlocutory appeal in the XRP case.
The SEC’s Denied Motion: A Closer Look
On the backdrop of October 3, 2024, Judge Analisa Torres of the United States District Court for the Southern District of New York made a definitive move. She dismissed the US Securities and Exchange Commission’s (SEC) plea to instate an interlocutory appeal concerning the ongoing lawsuit against Ripple Labs, and more precisely, its cryptocurrency, XRP. The legal entanglement also ropes in Ripple’s top brass – CEO Brad Garlinghouse and Executive Chairman Chris Larsen.
To demystify the term ‘interlocutory appeal,’ it essentially refers to an appeal made before a trial’s final decision. The court’s rejection was based on several pivotal reasons. Firstly, the SEC couldn’t convincingly demonstrate that the Court had erred in applying the Howey test – a standard used to determine if an asset qualifies as an “investment contract.” Additionally, the SEC failed to argue that the interlocutory appeal might lead to a judgment reversal, and it couldn’t address various arguments favoring the XRP token sale under the said investment contract umbrella.
Stepping Towards the Trial Date
While shooting down the SEC’s appeal motion, Judge Torres also marked the calendar with a significant date: the trial for the XRP lawsuit is earmarked for April 23, 2024. Yet, there’s a caveat. Both parties – Ripple and the US SEC – need to adhere to the December 4, 2023, deadline for document submission, as specified in the Court’s Pretrial Scheduling Order. This order also clarifies:
“By December 4, 2023, the parties shall submit any motions in limine. Oppositions to any motions in limine shall be submitted by December 18, 2023.”
Any oversights in these submissions might cascade into further postponements of the trial. Notably, back in May 2023, both parties sought an extension for document filing, referring to the substantial volume of materials involved. Furthermore, legal circles are abuzz with speculation. The trial might not even see the light of day if the SEC opts to withdraw the case in the upcoming weeks. Legal expert Jeremy Hogan articulated this recent denial of the SEC’s motion as a significant setback for the agency.
Amidst these legal tussles, XRP‘s market behavior responds dynamically. Post the court order, XRP’s value escalated by a commendable 4%. Moreover, following a significant Summary Judgment by Judge Torres on July 13, 2023, XRP witnessed a staggering 72% price surge. The ball is now in the SEC’s court, and their next move will undeniably influence XRP’s financial trajectory.