The U.S. Court Rejects SEC's Appeal Bid in Ripple Case, Setting Trial Date for Garlinghouse and Larsen
In a significant development, the U.S. Court has declined the Securities and Exchange Commission's (SEC) request for an interlocutory appeal in its ongoing legal battle with Ripple, the San Francisco-based blockchain giant. Ripple CEO Brad Garlinghouse celebrated the decision, highlighting that the court effectively signaled the SEC to proceed with the case. As a result, the XRP token saw a nearly 4% increase in its price.
The rejection was based on several key factors, with Judge Analisa Torres delivering a detailed explanation. She emphasized that the SEC failed to present a clear and swiftly resolvable question without diving into the case's extensive record. Furthermore, the court dismissed the SEC's argument that there were substantial differences in opinion regarding the contentious ruling. The SEC's reference to the Terraform Labs case to bolster its position was also dismissed, as speculation alone about potential disagreements between courts was deemed insufficient.
The court clarified that allowing an appeal would not substantially expedite the case's resolution. If the Second Circuit were to overturn the current order and return the case, it would introduce complex legal and factual issues. An interlocutory appeal could lead to repeated appellate reviews, further delaying a final resolution.
Ripple's chief legal representative reiterated that XRP is not a security in light of this latest court decision.
With the appeal request denied, the trial for Brad Garlinghouse and co-founder Chris Larsen is scheduled to begin on April 23, 2024, at 9:00 a.m. at the United States Courthouse on Pearl Street in New York. Prior to that, various pretrial preparations are in order, with both parties expected to submit motions in limine, pretrial filings, and all documentary exhibits for admission by December 4. Oppositions to any motions must be filed by December 18. Leading up to the trial, a final pretrial conference, involving counsel for all parties, is slated for April 16, 2024, at 2:00 p.m. in the same courthouse.