Ripple Appeal Deadline Nears; SEC Filing Delayed

Ripple Appeal Deadline Nears; SEC Filing Delayed

The ongoing legal fight between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs has turned a new page as the SEC is still to submit its important Form C to the Second Circuit Court of Appeals. The form is necessary for explaining the details of the SEC’s appeal against a decision that partially favored Ripple, which stated that XRP is not a security in some situations.

The SEC had on October 2, 2024 submitted a notice of appeal of Judge Torres’ July decision that had concluded Ripple’s sales of XRP to retail customers were not securities transactions.

But non-submission of form C (which is a critical form in ensuring transparency and regulation compliance in crowdfunding operations, both in investor trust and in legal process in a case like Ripple’s appeal) has created uncertainty about its legal strategy.

Form C Part A
Form C, Part A
Ripple Appeal Deadline Nears; SEC Filing Delayed
Form C, Part B and C

Reasons for the Delay

The could be various reasons for the delay but the community speculate the reasons for delays as follows:

  • Strategic Positioning: The SEC may be using the delay to prepare solid arguments.
  • Negotiating Leverage: The delay could also provide the SEC time to explore settlement opportunities with Ripple that could avoid prolonged litigation.
  • Market Impact: The appeal itself has negatively impacted the token’s price, and this delay could further cause a dip in the price, shaking the investor confidence in Ripple and its future.

Ripple’s Cross Appeal

Ripple’s Chief Legal Officer, Stuart Alderoty indicated that the company is considering filing a cross-appeal against the aspects of Judge Torres decision, particularly concerning the $125 million penalty imposed on XRP. The filing of Form C from SEC’s side becomes crucial because after it is filed, XRP would know in which direction to go about and how to proceed with the cross-appeal.

If Ripple decides to proceed with the cross-appeal, it has to be filed 14 days from October 3. Delay from SEC will not work in XRP’s favor as they would be shooting in the blind with the cross-appeal.

Legal experts speculate that such delays could cause delay in proceedings, potentially extending the case until 2026.

As the XRP community closely monitors the entire situation, there are concerns hovering over the implications of these appeals on cryptocurrency regulations and market dynamics. The situation remains haywire as of now but will set a significant precedent for future cases in the crypto market after the case is resolved.

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Niharika Deshpande
Written by Niharika Deshpande

Niharika has over two years of experience as a crypto-journalist and is part of the team at CryptoNewsZ. Although she holds a Master’s in Biochemistry, she has a knack for simplifying complex blockchain concepts. With a keen eye for industry trends, she delivers breaking stories and insightful analyses of the crypto world. Her articles serve as a go-to resource for those navigating crypto gambling, offering clear and well-researched insights. She also covers the latest crypto pre-sales and emerging token launches, helping investors stay informed. Passionate about the evolving blockchain space, she continues to explore its impact on various sectors. Beyond journalism, she actively engages with the crypto community, fostering discussions on decentralized innovations.