Crypto News: Ripple-SEC Trial Dates Set
Judge Analisa Torres has ruled that XRP traded on secondary markets should not be considered a security. However, the SEC’s case against Ripple is still ongoing. A document filed by Judge Torres sets the dates for upcoming deadlines in the case. The parties must submit blackout dates for the trial by August 23rd and file motions in limine by December 4th. Opposing motions in limine must be filed by December 18th. Judge Torres plans to have a full-fledged courtroom trial with a jury to judge Ripple’s actions. The start date for the trial has yet to be determined but speculations suggest it could be between April 1st and June 30th, 2024.
Ripple and XRP
Ripple is a private US-based company, and XRP is the cryptocurrency it created. Ripple initially faced accusations of being too centralized, prompting them to rename the cryptocurrency to XRP and make its blockchain less centralized. However, XRP’s use is still closely tied to Ripple’s platforms. Ripple owns and operates major platforms where XRP is used as a trading currency. Without Ripple, XRP would lose much of its use and value.
Ripple and the SEC
The SEC took issue with both Ripple and XRP. Judge Torres ruled that XRP traded on exchanges cannot be considered implicit investment contracts. The issue lies in the sale of XRP by Ripple, which constituted an implied investment contract. The SEC aimed to deem many cryptocurrencies as securities, but this ruling states that XRP is not definable as a security. The ruling overrides the SEC’s interpretation of securities law in the US.
The Defeat
This ruling is a major defeat for the SEC, as it wanted to classify many cryptocurrencies as securities. However, the SEC does not have the power to make laws or decide their application. The law in the US is made by Congress and interpreted by the courts. Ripple was found guilty, but the seriousness of the ruling will depend on the jury’s eventual conviction. XRP emerged as the victor, but a heavy sentence on Ripple could negatively impact the project.
Hot Take
The ongoing case between Ripple and the SEC has significant implications for the crypto market. While XRP has been ruled as not definable as a security, Ripple’s actions and potential conviction could impact the project’s future. The outcome of this case will shape the regulatory landscape for cryptocurrencies and highlight the need for clarity and distinction between companies and their associated cryptocurrencies.
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