Ripple Labs and the Securities and Exchange Commission (SEC) have been at odds for over four years, and the case could potentially extend into its fifth year. The lawsuit has been one of the most closely watched court cases in the crypto industry, as its outcome could determine the future of crypto regulations.
Over the years, the court battle reached several pivotal moments, including a landmark victory for Ripple in 2023, when XRP was declared non-secure. However, the regulatory body challenged the other parts of the court ruling, including the programmatic sales of XRP.
Against the backdrop of the SEC’s appeal, Ripple filed a cross-appeal notice, questioning the specifics of an investment contract as relates to XRP sales.
Also Read: Massive XRP Crash: Here is What Happened
Moreover, on January 15, the SEC submitted its opening brief to the Second Circuit Court of Appeals, and Ripple is now expected to respond. On this, Ripple has requested a new date of April 16 to submit its cross-appeal brief.
Ripple Allowing Time For Potential Resolution?
Ripple’s new deadline request has sparked discussion in crypto X, with members speculating on the reason for the extended date. Particularly, a user, Kevin Mclaw, asked former SEC lawyer, Marc Fagel about the significance of Ripple’s request, seeking clarity on the way forward.
Fagel responded, explaining that it is a standard practice for lawyers to utilize the maximum time allowed in situations like this, reflecting a similar strategy applied by the SEC in extending its opening brief deadline. However, Fagel extended his response, citing a possible strategy of Ripple buying time for the new SEC leadership to resolve the case.
“Though I don’t think there’s any doubt they’re also allowing time for a new SEC leadership to resolve the case before they have to file the brief,” he said.
However, Fagel noted that even though it is a very unusual possibility, he believes that this is most likely the reason for the extension request.
Meanwhile, other lawyers, including Jeremy Hogan, have criticized the SEC’s opening brief, claiming that the commission has yet to prove that XRP investors expected profits from Ripple’s dealings. Also, Ripple’s legal team has expressed its confidence in Ripple’s standing and hopes for a dismissal, describing the SEC appeal as a rehashed argument.
The case between Ripple and the SEC has grown to be one of the most significant cases in the crypto world, with implications reaching beyond XRP. The conclusion to the lawsuit could determine how cryptocurrencies are regulated in the United States.
Also Read: Ripple’s Legal Chief to Discuss Crypto Regulation and Future Plans at XRP Community Day
