Ripple Labs v. SEC jury trial is set for spring 2024

Ripple Labs et al and the SEC have until Dec. 4, 2023 to submit all pretrial filings, document exhibits, and motions to exclude evidence from the jury

article-image

kkssr/Shutterstock modified by Blockworks

share

A federal judge has issued a timeline for when we can expect to hear the US Securities and Exchange Commission’s arguments against Ripple Labs and its current and former executives in front of a jury. 

The case is expected to go to trial in the Southern District of New York during the second quarter of 2024, court filings released Wednesday show. Both parties have two weeks to submit blackout dates to the court. 

All parties have until Dec. 4, 2023 to submit all pretrial filings, document exhibits and motions to exclude evidence from the jury, the judge added. 

The latest filing comes weeks after Judge Analisa Torres handed down a partial summary judgment in the case, which started in December 2020. The court ruled that while Ripple’s institutional sales of XRP were found to constitute an unregistered securities offering, programmatic sales were not.

The upcoming trial will determine the legal liability of Ripple’s founder and former CEO Christian Larsen and former chief operating officer and current CEO Brad Garlinghouse. The two were charged with aiding and abetting securities laws violations with regards to Ripple’s XRP token. Ripple Labs does not face aiding and abetting charges.

While many in the crypto community and pro-Ripple camp saw the ruling as a major win, the summary judgment does not set a precedent for other tokens and issuers. 

Torres’ ruling did not determine whether or not a physical written contract is required as part of the Howey test. Ripple argues that because it did not have a written contract, it does not qualify as a security. 

The trial announcement came hours after a widely-circulated document claiming the SEC had elected not to appeal the programmatic sales ruling proved to be fake. XRP tokens rallied around 3% on the false reports.

The SEC has not filed an appeal yet, and it does not have a strict deadline to submit an interlocutory appeal. However, legal experts say that if an appeal is coming, it will likely be filed by the end of this week. Aug. 11 will be the 30-day mark from when the summary judgment was handed down, after which it will be harder for the SEC to make its case, Jeremy Hogan, partner at Hogan and Hogan, said in a tweet

Per Torres’ summary judgment, either party must make its appeal request within a “reasonable” amount of time.

Updated Aug. 9, 2023 at 4:19 pm ET: Clarified current and former Ripple Labs executives are facing charges of aiding and abetting securities law violations. These charges will be determined at trial. Ripple Labs has not been charged with aiding and abetting.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report - cover graphics (1).jpg

Research

In this report, we dive into crypto private market data to gather insights on where the future of the industry is headed. Despite a notable downturn in private raises, capital continues to infuse promising projects that aim to transform payments, banking, consumer experiences, community, and more, with 2023 being the fourth-largest year for crypto venture capital.

article-image

BUZZ holds shares of Coinbase, Robinhood and MicroStrategy

article-image

Opinion: Even though I didn’t pay for my “Diamond Hands” burger with BTC, don’t let that fool you into thinking that crypto’s development is futile

article-image

The results mark “a major positive inflection point,” one analyst says, as the exchange carries net income momentum into a crypto rally

article-image

While the slate of 10 US spot bitcoin funds have tallied $4.6 billion of net inflows thus far, half of the field is lagging the leaders

article-image

Trading volumes totalled $154 billion in Q4, including $125 billion in institutional volume

article-image

DeFi on Bitcoin is all the rage right now and Stacks is positioned to benefit