On Thursday, the U.S. Securities and Exchange Commission (SEC) filed a request with the U.S. Court of Appeals for the Second Circuit, seeking an extension to submit its principal brief by January 15, 2025. The filing, disclosed by defense lawyer and former federal prosecutor James K. Filan on social media platform X, adds a new dimension to the long-standing SEC vs. Ripple lawsuit.
Simultaneously, Ripple Labs submitted its pre-argument statement on Form C to the same court, highlighting the issues it plans to raise on appeal. At the center of Ripple’s appeal is a call for further clarity regarding applying the Howey test to digital assets like XRP. Given the heightened regulatory focus on digital assets, this legal interpretation could hold significant implications for the broader cryptocurrency market.
Also Read: Ripple Submits Form C in SEC Lawsuit, Questions Specifics of “Investment Contracts,” and Others
The SEC’s legal push follows Judge Analisa Torres’ prior ruling that XRP sales on crypto exchanges do not meet the criteria of investment contracts, except in cases of sales made directly to institutional investors. Ripple, on the other hand, seeks additional interpretation on the Howey test, aiming for a clearer legal standing for XRP and potentially other cryptocurrencies.
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Expert Insights and Potential Market Impact
With only two weeks left to the 2024 U.S. presidential and congressional elections, many in the crypto space, including Ripple, are waiting for new policies. Republican presidential candidate Donald Trump has backed the cryptocurrency sector, vowing to fire SEC Chair Gary Gensler if he were to be elected. This move could signal a policy change that would impact ongoing regulatory actions against digital assets, with attorney Jeremy Hogan forecasting the possibility of a shift away from aggressive crypto enforcement under a new administration.
Despite expert predictions that the case may not conclude until 2026, the XRP community is hopeful for resolution, especially as the cryptocurrency market nears an anticipated altcoin season. Some analysts note that the SEC’s lawsuit against Ripple weighed heavily on XRP’s market performance during the last bull run in 2021. However, a recent market analysis by trial attorney Fred Rispoli indicates that the lawsuit’s impact on XRP has diminished over time, suggesting a potential for recovery.
Conclusion
As both the SEC and Ripple prepare for further court proceedings, the stakes in the case remain high for XRP and the broader cryptocurrency market. With regulatory clarity and possible policy shifts on the horizon, market observers are closely monitoring developments in this pivotal legal battle.
Also Read: U.S. Govt Could Seize All Ripple’s XRP and Other Assets if This Happens
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.