If the SEC fails to submit its main appeal by the specified deadline, the appeal will be automatically dismissed.
Appeals Court Sets Deadline for SEC to Submit Appeal
The United States Court of Appeals for the Second Circuit has ordered the Securities and Exchange Commission (SEC) to file its main appeal against Ripple Labs by January 15, 2025. This decision came after the SEC requested an extension until that date.
No Further Delays
Initially, the SEC missed its deadline to submit the appeal request. Attorney James K. Filan revealed the SEC’s formal request for an extension, and on November 1, a former federal prosecutor shared the court's decision to approve the extension. According to the document, if the SEC does not file its appeal by January 15, it will be dismissed. The court also stated that any further requests for extensions will not alter this deadline.
Legal Battle and the 2023 Ruling
The legal battle began following a 2023 ruling by Judge Analisa Torres, who concluded that Ripple's XRP token sales on exchanges do not constitute investment contracts under the Howey Test. However, #Ripple💰 was ordered to pay a $125 million fine for institutional sales of #Xrp🔥🔥 , which the judge deemed a violation of securities laws.
In response, the SEC announced its intent to appeal certain parts of the ruling. On October 17, the SEC filed its appeal statement, challenging, among other things, Ripple's programmatic sales of XRP on crypto platforms and token sales by Ripple’s executives, Brad Garlinghouse and Christian Larsen.
Ripple’s Counter-Move – Cross-Appeal
Ripple responded to the SEC’s actions with its own cross-appeal against certain parts of Judge Torres's decision. The company raised four main objections, including the definition of an “investment contract” under the Securities Act of 1933. Ripple argues that an investment contract requires a formal agreement with post-sale obligations and a profit guarantee for the buyer, which it claims does not apply to XRP sales.
Ripple also invoked the “fair notice” doctrine, arguing that the SEC and other regulatory bodies failed to provide adequate guidance on the legal status of cryptocurrencies. Ripple emphasized that it sought to inform XRP buyers of this regulatory uncertainty.
Prolonged Lawsuit Frustrates the XRP Community
This lawsuit, spanning over four years, has seen multiple delays, causing frustration among the #XRPcommunity .
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