Ripple achieved another victory against the SEC in court; However, the legal battle continues, with a trial scheduled for April 23, 2024. The result of Ripple vs. SEC is critical to the crypto industry, and could redefine regulatory guidelines for what is considered a security.
The SEC is on a losing streak in court. This week, Ripple scored another victory after Judge Analisa Torres denied the SEC’s motion to appeal the case because it failed to meet its respective burden of proof, highlighting its lack of evidence.
Ripple boosted its morale after the news and XRP rose over 5% shortly after. The XRP community declared victory, which might be a little early as this long-running legal battle is far from over.
In that same court ruling, Judge Torres set the trial date for April 23, 2024. The two parties must present all necessary pre-trial files and documents by December 4, 2023.
However, the SEC can appeal the case once the trial concludes, and the chances are high since the standard litigation process allows for appeals after the trial, putting the case back on track.
Elliott Z. Stein, senior litigation analyst at Bloomberg, said the court only dismissed the interlocutory appeal before the final ruling in the case. This means that it was only an immediate appeal before the trial itself:
“Correct. This only denied the interlocutory (i.e., immediate) appeal before final judgment in the case. Appeals (probably by both sides) in the regular course of litigation will still come after the individuals’ trial in April and remedies are determined,” Stein posted on X.
Final Judge in Case Could Have Big Impact on Cryptocurrencies
Ripple’s case against the SEC has generated a lot of controversy since it began approximately three years ago. The regulatory agency accused the company of selling unregistered securities, sparking a heated debate over what constitutes a security.
Things haven’t gone exactly as the SEC expected, though, which may explain its abrupt behavior against the cryptocurrency industry, as the agency’s president, Gary Gensler, claimed that the industry is full of hucksters.
The outcome of this case could be one of the most important catalysts for XRP and the crypto community as a whole. Whether this outcome will be positive or negative will determine what gives the SEC jurisdiction over what is security and will redefine the regulatory landscape.
Latest Updates on Ripple and XRP
The last few weeks have been quite busy for Ripple, both on the legal front and in its ecosystem. Regarding the XRP community, there is a new feature that is generating controversy: the Clawback functionality:
- Clawback, a feature of XRP Ledger version 1.12.0, allows asset issuers to claim tokens if they suspect the receiving party is fraudulent or has lost access to the account.
- It has been controversial: The community is concerned whether this will give broadcasters excessive control or potential for misuse.
In other news, Ripple was nominated to the Fintech 100 list for modernizing the way cross-border payments are settled.
Finally, Chase Bank, one of the largest financial institution subsidiaries of JPMorgan, recently partnered with blockchain settlement system FCF Pay to allow customers to use cryptocurrencies as a means of payment, including Ripple’s XRP and Shiba Inu (SHIB).
By Leonardo Pérez
