District Judge Rejects SEC’s Move to Certify Appeal in Ripple Case
District Judge Analisa Torres has denied the Securities and Exchange Commission’s (SEC) request to certify an interlocutory appeal in its legal battle with cryptocurrency firm Ripple. The judge stated that the agency failed to demonstrate how the appeal would significantly advance the termination of the litigation. As a result, the SEC’s motion for certification of interlocutory appeal and request for a stay were both denied as moot. A trial is scheduled for April 23, 2024, and pretrial filings are expected to be submitted by both parties by the end of this year. Judge Torres also ordered the parties to discuss settlement possibilities before the final pretrial conference.
SEC’s Attempt to Extend Ripple Case Impact Denied
In August, the SEC filed a motion in the US District Court for the Southern District of New York, seeking certification for an interlocutory appeal. The agency argued that how the court handles the Ripple case could have a significant impact on other pending litigation involving top crypto trading platforms like Binance and Coinbase. Specifically, the SEC wanted to appeal the decision regarding programmatic sales and other distributions of XRP in exchange for goods and services.
Judge Torres’ Rulings on Ripple Case
Judge Torres previously ruled in July that some of Ripple’s sales of XRP did not violate securities laws. However, she determined that other direct sales of the token to institutional investors were considered securities, granting a partial win for the SEC. The agency initially filed a lawsuit against Ripple, CEO Brad Garlinghouse, and co-founder Christian Larsen in 2020, accusing them of raising $1.3 billion through XRP sales.
Hot Take: Uncertainty Lingers as Ripple Case Proceeds
The denial of the SEC’s request to certify an interlocutory appeal in the Ripple case prolongs the legal battle and leaves room for continued uncertainty in the crypto industry. The outcome of this trial could have far-reaching implications for similar cases involving regulatory agencies and cryptocurrency platforms. As the trial date approaches, both Ripple and the SEC will need to carefully prepare their arguments and evidence to support their respective positions. The crypto community will be closely watching as this high-profile case unfolds, as it has the potential to shape future regulations and practices within the industry.
By
By
By