NAIROBI (CoinChapter.com) — The long-standing SEC vs Ripple lawsuit is entering a new phase following the Securities and Exchange Commission’s (SEC) appeal against the $125 million fine imposed on Ripple. This legal battle, which began in Dec. 2020, has seen multiple rulings, and the latest developments suggest it could continue for years.
SEC Appeals Ripple Fine, Extends Timeline
The SEC filed an appeal on Oct. 2, to the Second Circuit Court of Appeals in early Oct. 2024, challenging the ruling by Judge Analisa Torres that led to a $125 million fine on Ripple. Although the SEC initially sought $2 billion, it now aims to overturn the judgment and push for stricter penalties.
SEC Appeals Ripple Case to Second Circuit. Source:
Legal expert Fred Rispoli outlined the likely next steps. The SEC’s opening brief is expected by Dec. 2, 2024, but the regulator is likely to request a 30-day extension, which would push it to Jan. 2025. Ripple will likely cross-appeal, with opposition briefs due by Feb. 2025. Both parties could take extensions, with reply briefs expected in March 2025.
Fred Rispoli outlines SEC vs Ripple lawsuit timeline. Source: X
Opposition briefs are due by Feb. 2025, with Ripple likely to seek more time, taking the process into March. Reply briefs should follow by the end of that month, with oral arguments possibly happening between Sept. and Oct. 2025. Consequently, a ruling from the Second Circuit may come in early 2026, but could stretch to March or April.
Ripple CEO Questions SEC’s Ongoing Legal Strategy
Ripple’s Chief Legal Officer Stuart Alderoty expressed disappointment at the SEC’s appeal, calling it “not surprising.” Ripple CEO Brad Garlinghouse has consistently questioned the SEC’s rationale, arguing that the lawsuit has not protected investors.
Ripple CEO Criticizes SEC’s Continued Legal Action. Source: Brad Garlinghouse/X
In an August interview with CoinDesk, Alderoty expressed doubt regarding the SEC’s prospects in the appeal process and advised the Ripple community to remain calm. He highlighted the challenges he anticipates the SEC will encounter in attempting to convince the appeals court to overturn what he views as a favorable district court ruling for Ripple.
The case was first filed against Ripple and its executives, including Garlinghouse and Co-Founder Chris Larsen, who were later cleared in the Oct. 2023. Nonetheless, the company was charged with securities laws disregard concerning institutional offerings of Ripple and consequently was fined $125 million.
Ripple asserts that the judge’s decision corresponds to the high court’s decisions, but the SEC maintains that the decision is anathema to the legislation on securities.
Supreme Court Possibility Adds Years to the Case
The SEC vs Ripple lawsuit could take another major turn if it reaches the Supreme Court, with Rispoli estimating the process could take an additional 1.5 to 2 years beyond current proceedings.
Moreover, XRP Investors and crypto stakeholders will likely have to wait until early 2026 for a resolution from the Second Circuit Court. Above all, the SEC’s persistent stance underscores the complexity of regulating digital assets like XRP.
In a separate yet related development on Oct. 10, Bitwise submitted the first Form S-1 with the U.S. Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) that invests in XRP.
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