The United States District Court for the Southern District of New York has scheduled the trial for the U.S. Securities and Exchange Commission (SEC) lawsuit against Ripple to begin in the second quarter of 2024. In a significant development, the court denied the SEC’s motion to file an interlocutory appeal in the XRP lawsuit. Judge Analisa Torres rejected the motion on multiple grounds, including the SEC’s failure to argue how the court ruling misapplied the Howey test and how the appeal would result in a reversal of the judgment. The denial sets the stage for the trial to proceed as planned.
Judge Torres, while denying the SEC’s motion for an appeal, announced that the trial in the XRP lawsuit is scheduled to commence on April 23, 2024. However, the trial date is contingent upon both parties complying with the document submission deadline of December 4, 2023, as outlined in the court’s Pretrial Scheduling Order.
Failure to meet this deadline could potentially lead to further delays in the trial. In the past, Ripple and the SEC had requested an extension to file documents due to the extensive nature of the materials involved. It remains to be seen whether the SEC will drop the case in the coming weeks, which could potentially render the trial unnecessary.
The court’s denial of the SEC’s motion for an interlocutory appeal had an immediate impact on the XRP price, causing it to surge by 4%. This increase follows a significant jump of 72% in the XRP price after Judge Torres issued a landmark Summary Judgment on July 13, 2023.
The SEC’s response to the denial of the appeal will be crucial in determining future price movements. Attorney Jeremy Hogan described the court’s decision as a “disaster for the agency,” highlighting the potential implications for the SEC’s case against Ripple and its impact on the cryptocurrency market.