The United States Court of Appeals for the Second Circuit has done so issued an order in the XRP lawsuit between the Securities and Exchange Commission (SEC) and Ripple Labs, Inc. The court ordered the SEC to file its appeal letter by January 15, 2025, setting a firm deadline.
Ripple Case Update: New SEC Filing Deadline
The judgment of the court, dated October 31, 2024, states unequivocally: “It is HEREBY ORDERED that the letter of Appellant-Cross-Appellee shall be filed on or before January 15, 2025. The appeal will be dismissed with effect from January 15, 2025 if the letter is rejected. not submitted on that date. A motion to extend the time for filing the brief or to seek other relief will not affect the filing date.”
This strict guideline emphasizes that failure to comply will result in the dismissal of the SEC’s appeal, underscoring the court’s emphasis on adhering to procedural deadlines.
The court’s order follows recently controversy surrounding the SEC’s filing of Form C, which outlines the specific issues the agency intends to address on appeal. There was much speculation within the XRP legal community that the SEC had missed the deadline for this crucial filing.
The SEC managed to file Form C just before the discussed deadline of October 17, 2024. The precise deadline was a point of contention, with discussions focusing on whether it fell on October 16 or 17. A missed deadline could have jeopardized the SEC’s ability to act. proceed with the appeal. Legal experts noted, however, that while missing such a deadline constitutes a procedural error, courts often grant federal agencies some leeway to correct these errors.
The court’s order provoked notable responses from legal professionals involved in the XRP community. Pro-XRP advocate Bill Morgan responded to X: “At least the consequences of not meeting this deadline are clear.”
Commercial litigator and Bitcoin lawyer Joe Carlasare noted: “This is the default order.” Carlasare’s comment suggests that while the order is strict, it aligns with typical procedural guidelines in appellate cases, and does not address the SEC’s earlier Form C filing.
Adding another layer of complexity, the upcoming US presidential elections could significantly impact the SEC’s handling of the case. If former President Donald Trump is successful against Vice President Kamala Harris, regulatory leadership could change. At the Bitcoin 2024 conference, Trump made a bold claim that he will fire Gary Gensler, chairman of the Securities and Exchange Commission, on day one.
This statement has fueled speculation that a new SEC chairman under the Trump administration could choose to drop the case against Ripple before the January 15 deadline. However, if Trump loses, the next important date will be set in the Ripple vs. SEC case.
At the time of writing, XRP was trading at $0.5117.
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