In a significant legal development, Ripple has achieved a notable victory in the ongoing litigation involving In re Ripple Labs Inc. A U.S. court has ruled in favor of Ripple Labs, XRP II LLC, and Brad Garlinghouse, marking a pivotal moment in the protracted case concerning unregistered securities sales. Judge Phyllis Hamilton has granted Ripple’s motion for final judgment on certain class claims, effectively narrowing the scope of the case and setting the stage for a trial in January 2025.
The Path to Judgment: Limiting the Case Scope
The recent joint motion, filed by both Ripple and the plaintiffs, sought final judgment on settled class claims and proposed a stay on the remaining claims pending appeal. The court’s decision focuses on class action claims related to unregistered securities sales, Ripple’s potential liability as a “control person,” and alleged violations of California securities laws.
The End of the Lawsuit Soon?
This ruling represents a monumental step forward for Ripple and has the potential to expedite the conclusion of the lawsuit. The judge has scheduled the trial for January 21, 2025, while dismissing earlier pretrial dates. New dates will be set following the resolution of any or all appeals concerning the class claims. Ripple’s request for final judgment on the class claims was strategically aimed at avoiding a lengthy legal process, narrowing the case’s focus, and gaining clarity on the remaining claims. Additionally, the court has encouraged both parties to explore alternative dispute resolution methods, potentially paving the way for settlement discussions in the coming months.
Implications on the Ripple vs. SEC Case
The implications of this legal victory extend beyond the current case. It could have a significant impact on the ongoing Ripple vs. SEC case, where the U.S. Securities and Exchange Commission (SEC) has accused Ripple of violating federal securities laws. This recent win may bolster Ripple’s confidence in its stance against the SEC. In light of former President Trump’s hints at regulatory clarity within the industry and his promise to remove Gary Gensler from his position, the market eagerly anticipates action from the administration. Legal experts, including Ripple CTO David Schwartz, suggest that a dismissal or settlement is possible. Attorney Fred Rispoli has noted that while a settlement appears more realistic, a full dismissal remains unlikely.
Gary Gensler to Exit Soon?
With Trump’s inauguration scheduled for January 20, pro-XRP attorney James Murphy, known as MetaLawMan on social media platform X, predicts that Gary Gensler may vacate his position as early as this month. Gensler’s potential resignation and the appointment of a pro-crypto successor could catalyze a substantial market resurgence.
As the legal landscape continues to evolve, Ripple’s recent triumph underscores the dynamic nature of the cryptocurrency industry’s regulatory environment. Stakeholders and market participants alike are keenly observing the unfolding events, anticipating further developments that could shape the future of digital asset regulation.
