The U.S. Court of Appeals for the Second Circuit has mandated the SEC to submit its primary appeal brief against Ripple Labs by January 15, 2025. This deadline follows the SEC’s request for an extension and highlights the court’s intent to keep the case progressing. Defense attorney James K. Filan shared the court’s decision, allowing the extension but adding a critical caveat: the court will dismiss the appeal if the SEC fails to file by January 15. The court clarified it will not entertain any further extension requests, establishing a strict timeline for this high-profile case.
The legal battle started in 2023 when Judge Analisa Torres decided that the sale of XRP on exchanges was not an investment contract under the Howey test. Nonetheless, Judge Torres held that Ripple sold XRP to institutional investors while violating securities laws and ordered Ripple to pay a fine of $125 million. In response, the SEC filed a notice of its pre-argument motion on October 17, stating the specific issues it will seek to challenge, including Ripple’s programmatic selling of XRP through trading platforms and sales by the company’s top executives Garlinghouse and Larsen, respectively.
Also Read: Ripple vs. SEC Case Intensifies with New January Deadline, Industry Eyes High-Stakes Outcome
Ripple’s Cross-Appeal Introduces Broader Regulatory Challenges
Ripple countered with a cross-appeal, questioning specific aspects of Judge Torres’s ruling. Ripple legal counsel claimed that an ‘investment contract’ means a formal contract with continuing obligations after the buyer-seller relationship begins and the promise of a profit —which they do not believe can be attributed to XRP transactions. Ripple also sought to defend its operations through the ‘fair notice’ by pointing out that the SEC and other regulatory authorities never gave adequate information on the legal complexities of federal laws on cryptocurrencies. Ripple insists it informed XRP buyers about this regulatory risk, focusing on regulatory niches. The case spans over four years and has seen multiple delays, frustrating XRP holders and industry observers. Its outcome could set significant precedents for the broader cryptocurrency market and regulatory frameworks.
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Conclusion
With the January 15 deadline approaching, the stakes remain high for Ripple, the SEC, and the crypto industry. The court’s directive could shape the future of digital asset regulations in the U.S., marking this as a crucial case for the industry’s regulatory landscape.
Also Read: Ripple’s Legal Battle Nears Resolution as Court Proposes Swift End with XRP Set for Potential Boost
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.