Important update on Ripple lawsuit against SEC on November 1st

The US Court of Appeals for the Second Circuit has ordered the US Securities and Exchange Commission (SEC) to file its main appeal brief against Ripple Labs by January 15, 2025.

This comes after the agency asked for a deadline extension to the said date.

No more delays

Initially, the SEC missed the deadline for filing the appeal brief, and defense attorney James K. Filan revealed the regulator’s official request to delay the filing. On Nov. 1, the former federal prosecutor shared the Court of Appeals’ decision on the SEC’s request.

According to the document shown in Filan’s publication, while the court approved the regulator’s request, it indicated that if the agency does not file its brief by January 15, the appeal will effectively dismissed The court also stated that any additional requests for an extension or other relief would not change the filing deadline.

The legal battle stems from a landmark 2023 ruling by Judge Analisa Torres that found sales of Ripple’s XRP token on exchanges did not meet the criteria for investment contracts under the Howey test.

However, the judge also ordered Ripple to pay a $125 million fine for institutional sales of XRP, which it deemed a violation of securities laws.

In response, the SEC announced it would appeal parts of the ruling, eventually filing its pre-argument statement on October 17. In the document, the agency outlined several issues it would address, including Ripple’s programmatic sales of XRP to crypto trading platforms. as well as the personal sales of the payments company’s top executives, Brad Garlinghouse and Christian Larsen.

Ripple cross-appeal

Ripple countered the SEC’s move with a cross-appeal against specific parts of Judge Torres’ decision.

The appeal, which experts suggest could redefine the regulation of digital assets, raised four essential points, including a focus on the definition of “investment contract” under the Securities Act of 1933. The company claims that this contract requires a formal agreement with after-sales. obligations and a guarantee of profit for the buyer, a criterion they feel does not fit their XRP transactions.

Ripple also took aim at the “fair notice” doctrine, claiming that the SEC and other regulators failed to provide adequate guidance on the status of cryptocurrencies under federal law. He insisted that he made efforts to inform XRP buyers about this regulatory uncertainty.

The case, which has dragged on for more than four years, has seen numerous delays, causing frustration among the XRP community.

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

2024 LIMITED OFFER on BYDFi Exchange – Up to $2888 Welcome Reward, Use this link to register and open a 100 USDT-M position for free!