Despite the ongoing legal complexities with the U.S. Securities and Exchange Commission (SEC), Ripple Labs and its CEO, Brad Garlinghouse, have announced a “community celebration” for September 29 in New York City. While the event is being touted as a “proper victory party,” it’s important to note that the legal skirmish is far from over.
On July 13, 2023, District Judge Analisa Torres delivered a mixed ruling in the case. While she granted the SEC’s motion for summary judgment on Ripple’s Institutional Sales of XRP, she denied the SEC’s claims concerning other types of XRP sales. Specifically, the court ruled that Ripple’s Programmatic Sales, Other Distributions, and sales made by executives Brad Garlinghouse and Chris Larsen did not constitute offers and sales of investment contracts. Judge Torres stated that XRP, as a digital token, is not inherently a “contract, transaction, or scheme” that fulfills the Howey requirements of an investment contract.
However, it’s crucial to note that the legal battle is far from over. A Pretrial Scheduling Order filed on 9 August 2023 revealed that preparations for a jury trial involving Ripple, Garlinghouse, and Chris Larsen are underway. Judge Torres has set a tentative trial period between April 1 and June 30, 2024. Furthermore, on 18 August 2023, the SEC filed a motion to certify for interlocutory appeal, indicating that the regulatory body is not backing down.
The upcoming “victory party” then seems to be more of a morale booster and a show of resilience rather than a final celebration of legal vindication. While the event will undoubtedly serve as a rallying point for Ripple’s community and investors, it’s clear that the company is still navigating a complex legal maze.
The partial legal victories have allowed Ripple and its executives to breathe somewhat easier and focus on business operations. However, the looming trial and ongoing legal proceedings suggest that Ripple’s fight for full vindication is far from over. As such, the September 29 event could be seen as a momentary pause to regroup and celebrate the battles won, even as the war continues.
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