The co-defendants argued that the SEC failed to meet the burden of proof to support classifying programmatic sales of XRP as securities.
After the SEC files its motion on Friday, the digital asset company is expected to submit opposition arguments by September 1. Thursday’s ruling allows the SEC to file a motion to appeal, not to be mistaken for Judge Torres’s approval of the appeal itself.
🚨NEW: @Ripple GC @s_alderoty tells @RealVision's @AshBennington:
"We're not afraid of an appeal. We think we would win on an appeal…but let's get there on an ordinary course. Let's stop bending the rules to accommodate the @SECGov's strategy of regulation by enforcement."
SEC vs Ripple Headed To Trial
The SEC’s interlocutory motion seeks to appeal a specific ruling from Judge Torres. Previously, Judge Torres issued a summary judgment in partial favor of Ripple Labs. The verdict said programmatic sales of XRP did not qualify as securities considering the Howey test.
However, XRP sales to institutional investors met the Howey standard for classifying securities. SEC vs Ripple Labs et all is scheduled for trial in the Southern District of New York by Q2 2024.
There’s a deadline of December 4, 2023 for all parties to submit any filings and motions to exclude evidence from a jury, per court documents.
Garlinghouse and Larsen, Ripple co-founders, also face charges of aiding and abetting violations of U.S. securities laws.
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