The U.S. Securities and Exchange Commission (SEC) has come under fire for confusion surrounding a key filing deadline in its ongoing appeal against Ripple Labs. In the Ripple vs SEC case, the missed filing has raised eyebrows. It has also lead to speculation about internal issues within the agency under Chair Gary Gensler’s leadership.
John Deaton’s legal news platform, CryptoLaw, pointed out the SEC’s apparent procedural lapse. CryptoLaw suggested that it was indicative of broader regulatory mismanagement under Gensler. Ripple CEO Brad Garlinghouse criticized the SEC’s approach. He accused the Commission of employing delay tactics and arbitrary rule-making.
SEC’s Delay Mocked in Ripple Community Parody Post. Source: X
In a lighter vein, XRPP Productions tweeted a satirical remark mimicking the SEC, which added to the controversy by suggesting the agency was flippant about the filing deadline.
Date Discrepancies Fuel Ripple vs. SEC Appeal Confusion
MetaLawMan quickly pointed out a discrepancy in the SEC’s filing, noting that Form C was dated Oct. 16 but officially stamped on Oct. 17. This discrepancy has sparked speculation about whether the SEC missed its appeal deadline. He believes the Second Circuit Court will soon determine how this timing issue might impact the Ripple vs. SEC appeal process.
SEC vs. Ripple: Tensions flare over appeal process. Source: X
However, Eleanor Terrett followed up by stating that she had contacted the SEC for clarification. The SEC responded that the documents will be “filed publicly soon,” leaving some to speculate if they were filed earlier but appeared on the docket a day later.
What’s at Stake for Ripple?
Attorney Jeremy Hogan explained that the SEC’s appeal is focused on Ripple’s XRP sales and use as a payment method. He made it clear that the appeal does not seek to reclassify XRP as a security, a point already settled in July 2023. Instead, the appeal is about financial penalties and compliance, keeping Ripple’s financial stakes high.
XRP Not a security,’ says court ruling. Source: Stuart Alderoty/X
Ripple’s Chief Legal Officer, Stuart Alderoty, affirmed that the court’s decision regarding XRP’s status as non-security remains unchallenged and stands as law.
The resignation of SEC Enforcement Director Gurbir Grewal just prior to the filing added an element of drama to the situation. This comes on the heels of criticisms from Magistrate Judge Sarah Netburn who had previously called out the SEC for its “hypocrisy” in handling vital documents.
Did the SEC Miss the Deadline?
Legal experts, including attorney Jeremy Hogan and former SEC lawyer Marc Fagel, clarified that the SEC may not have missed its deadline.
SEC Officially Appeals Ripple Case Judgment to Second Circuit. Source: U.S. District Court – Southern District of New York
Hogan explained that the 14-day appeal window starts when the court dockets the Ripple vs SEC case, not when the SEC files the document. In this case, the court docketed the appeal on Oct. 4, giving the SEC until Oct. 18 to file Form C. This eliminates the immediate concern that the SEC missed the Oct. 16 deadline.
Even if the SEC had missed the deadline, Fagel explained that if the SEC missed the deadline, the court would likely view it as a procedural mistake. It likely wouldn’t see it as a sign that the agency is abandoning the Ripple vs SEC case. For now, the SEC maintains that the appeal is moving forward, though the agency’s credibility is increasingly under pressure.
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