The court has issued an order favoring Ripple Labs and CEO Brad Garlinghouse, following a joint request from both parties to move forward with a final judgment.
The court has scheduled January 21 2025 as the trial date, eliminating the associated pretrial dates, new dates will be established following the resolution of any appeals.
In the ongoing legal battle surrounding Ripple Labs Inc., the court has issued a favorable order for the defendants, which includes Ripple Labs itself, XRP II LLC, and CEO Brad Garlinghouse. This ruling follows a joint request made by both parties, allowing them to move forward with a final judgment while simultaneously placing a hold on the class claims brought forth by the plaintiffs.
The SEC’s main argument is that Ripple had generated $1.3 billion by selling XRP as an unregistered security, thus breaching federal securities regulations. They contended that Ripple’s XRP sales constituted an investment contract, implying that purchasers anticipated profits from Ripple’s initiatives, which classified XRP as a security under U.S. law.
XRP Class Action: Court Rules in Favour of Ripple
The ruling was made by Judge Phyllis Hamilton, who granted a motion that both sides agreed upon to enter a final judgment and implement a stay on the plaintiff’s claims. The In re Ripple Labs litigation has been a focal point of discussion, particularly concerning the regulatory status of the digital asset XRP.
Last month, Ripple sought the court’s guidance for a final judgment on the class action claims and also requested a hold on individual state law claims until a resolution could be achieved.
Furthermore, the court urged both parties to explore alternative dispute resolution methods for the ongoing individual claims. The trial has been scheduled for January 21 next year. The court will establish new dates following the resolution of any appeals related to the class claims.
Recent discussions about the potential conclusion or dismissal of the XRP lawsuit have gained attention, partly fueled by former President Donald Trump’s commitment to providing clearer regulations for cryptocurrencies. Trump has made his intentions clear about the dismissal of SEC Chair Gary Gensler. This sentiment is echoed by Chris Iacovella, President of the American Securities Association, who has called for Gensler’s resignation.
Legal experts and Ripple’s CTO, David Schwartz, suggest that the lawsuit may ultimately be dismissed. Attorney Fred Rispoli noted that while the SEC case against Ripple could be withdrawn at any moment, he considers the likelihood of a complete withdrawal of the XRP lawsuit to be “unrealistic,” though a settlement seems feasible.
This development follows the recent actions taken by both the SEC as it filed its Civil Appeal Pre-Argument Statement (Form C) with the Second Circuit Court of Appeals and Ripple responding with a cross-appeal, as reported by CNF.
In the past week, XRP has appreciated by 29%, while in the last 24 hours, it has gained 5.54%. Currently, it is trading at $0.7119. The 24-hour trading volume has seen a decrease of 34.58% at the time of reporting and is currently at $6 billion.
