The legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) is entering a new phase as the two sides prepare for an extended appeal process. The case, which began in December 2020, revolves around whether Ripple’s XRP token qualifies as a security and if Ripple conducted unlicensed sales of XRP. With the appeal now underway, the legal proceedings are anticipated to stretch into 2026, potentially influencing the future of cryptocurrency regulation.
The next major step in the case comes with the SEC’s filing of Form C, due by October 16, 2024. This document will highlight the specific issues in appeal that the agency would love to advance on. In return, Ripple will file its Form C within seven days of the filing of the complaint by the SEC. Regarding the cross-appeal, Ripple will concentrate on the part of the decision that found certain institutional XRP sales to be the unregistered sales of securities.
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Appeal Process Timeline and Key Deadlines
Once both parties submit their Form C filings, they will work together to establish a timeline for filing legal briefs. In turn, the SEC will be given up to 90 days to submit its opening brief, which will advance its legal arguments. Ripple’s legal advisors assume that the SEC will take the full 90 days, and the brief is expected to be filed by mid-January 2025.
Following the submission of the SEC’s brief, Ripple will present its rebuttal to the issues raised by the SEC. Both sides are expected to go back and forth, presenting their cases in detail up to mid-2025 or up to 2026, depending on the time it takes to come up with merits. This timeframe reveals the nature of the stakes that are not easy to solve, and both sides are getting ready for a long legal battle.
As the appeal moves forward, the outcome could significantly impact the broader cryptocurrency market. Whether XRP is a security remains a critical issue, and the ruling could set a precedent for how other digital assets are regulated.
Conclusion
With the appeal process expected to last well into 2026, Ripple and the SEC are preparing for a long, complicated legal journey. The crypto industry will closely watch the next phase as the outcome could have wide-reaching implications for digital asset regulation.
