Trial Dates Set In Long-Winded Ripple Case
The Securities and Exchange Commission (SEC) and Ripple Labs are poised to engage in a consequential legal battle as the scheduling for a jury trial takes shape. Judge Analisa Torres, presiding over the case, disclosed plans to convene the jury trial during the second quarter of the upcoming year within the Southern District of New York. This announcement comes as part of a pretrial scheduling order issued on Tuesday.
The court plans to schedule a jury trial in the Southern District of New York in the Q2 of next year for whether Ripple CEO Brad Garlinghouse and Chris Larsen are liable in the illegal sale of XRP securities.
The U.S. SEC said on Wednesday that it plans to challenge and appeal…
— Wu Blockchain (@WuBlockchain) August 10, 2023
Key Milestones and Deadlines
According to the pretrial scheduling order, both the SEC and Ripple have until December 4 of the current year to submit motions in limine. These pretrial motions are designed to determine the admissibility of specific evidence, with the aim of excluding certain pieces of evidence from being presented during the trial, as explained by Cornell Law School. Furthermore, both parties are required to provide their respective availability dates for trial proceedings by August 23.
Judge Torres made a significant ruling last month, mandating a trial by jury for Ripple’s CEO, Brad Garlinghouse, and Executive Chairman, Chris Larsen. The central issue under scrutiny is whether they can be held liable for alleged illegal securities sales. The sales in question pertain to institutional investors who acquired substantial quantities of XRP, amounting to hundreds of millions of dollars.
Complex Rulings
In her earlier ruling, Judge Torres discerned that some of Ripple’s sales of XRP did not infringe upon securities laws. This conclusion was based on a blind bid process employed in these transactions, ensuring that buyers were unaware of Ripple’s involvement or benefit from the sales. However, Judge Torres simultaneously adjudged that specific direct sales of the XRP token to institutional investors did, indeed, constitute securities.
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The roots of this legal conflict can be traced back to 2020, when the SEC levelled allegations against Ripple Labs. The agency contended that Ripple had amassed $1.3 billion in funds through the unregistered sale of XRP, asserting that XRP itself should be classified as a security. The charges extended to Ripple’s executives, Garlinghouse and Larsen, further escalating the dispute. As the trial inches closer, the likelihood of both sides appealing Judge Torres’ rulings looms large. Given the complexity of the case and the substantial stakes involved, this dispute is far from its conclusion. The impending trial is anticipated to illuminate critical legal precedents and potentially reshape the regulatory landscape for digital assets.
