In a significant turn of events for the cryptocurrency world, the U.S. Securities and Exchange Commission (SEC) has filed a notice of appeal, challenging the ruling from its high-profile legal battle with Ripple Labs. This case, which dates back to December 2020, is poised to drag on, with key developments expected in the coming months.
SEC Appeal Timeline Overview
Crypto attorney Fred Rispoli has laid out a potential timeline for the appeal process, offering insights into what both Ripple and the SEC will face as the legal drama unfolds.
- SEC Brief Submission: The SEC’s initial brief is due on December 2, 2024. However, insiders like Rispoli anticipate the SEC will request a 30-day extension, pushing the deadline to just after January 1, 2025.
- Ripple’s Cross-Appeal: Ripple is gearing up to file a cross-appeal, with its opening brief expected to coincide with the SEC’s submission.
- Opposition Briefs: Both parties will submit their opposition briefs by February 2, 2025. Rispoli believes Ripple is likely to request an extension, shifting this deadline to March 2, 2025.
- Reply Briefs: These will be due by the end of March 2025, allowing both sides to address arguments raised in the opposition briefs.
- Oral Arguments: Expect oral arguments to take place between September and October 2025, where both parties will present their cases before a panel of judges.
- Final Ruling: A final decision from the Second Circuit Court is anticipated as early as January 2026, but more realistically in March or April 2026.
The initial ruling from Judge Analisa Torres in July 2023 was a mixed outcome for both Ripple and the SEC. While XRP was deemed not a security when sold on public exchanges, the court found that Ripple’s sales to institutional investors did violate securities laws, resulting in a hefty $125 million fine. The SEC has yet to clarify the specific aspects of the case it intends to appeal, but speculation among former SEC lawyers suggests it will focus on challenging the ruling’s parameters.
XRP Market Reactions
The SEC’s recent appeal has already stirred significant market reactions. Following the announcement, XRP’s price plummeted by nearly 10%, highlighting investor anxiety over the extended legal uncertainty surrounding the token. As of press time, XRP trades at $0.5249, down 2% in the last 24 hours.
Also Read: Bitwise’s XRP ETF Filing Sparks 8-Month High In Transaction Volume Amid Regulatory Uncertainty
This ongoing legal saga carries broad implications for cryptocurrency regulation in the United States, and the final outcome could set critical precedents for how digital assets are classified and regulated. Ripple CEO Brad Garlinghouse has been vocal about the SEC’s stance, asserting that the regulator “lost on everything that matters” and emphasizing the company’s preparedness to contest the SEC’s claims in the appellate court.
As the case unfolds, stakeholders in the crypto market remain on high alert, keenly watching for any developments that could reshape the future landscape of cryptocurrency regulation in the U.S. The implications of this case extend far beyond Ripple and XRP, potentially impacting the entire industry as it strives for clarity and legitimacy in a rapidly evolving financial environment.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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