Ripple Gains 75-Day SEC Deadline Win: Dismissal Threat Looms

The Second Circuit Court mandated the SEC to file its Ripple appeal brief by January 15, 2025, or risk dismissal.
The court warned that any extension requests would not alter the January 15 deadline.
XRP supporters speculate the SEC might drop the appeal, anticipating potential leadership changes after the 2024 election.

Ripples high-stakes case has taken a new turn as the Second Circuit Court of Appeals has issued a strict deadline to the U.S. Securities and Exchange Commission (SEC) for its appeal. The court mandates that the SEC must submit its appellate brief by January 15, 2025, solidifying the timeline for a case that has already captivated the crypto industry. Prominent defense lawyer James K. Filan highlighted the importance of this mandate, calling the publics attention to the ruling.

Source

This new directive comes just a week after the SEC requested this January deadline, which the court approved in an order issued on October 31, 2024. However, the court didnt mince words, warning the SEC that missing the deadline would result in an automatic dismissal of its appeal. Moreover, the court specified that any request to extend the deadline would be disregarded, signaling its determination to move forward promptly.

The recent decision from the Second Circuit Court is another reminder of the seriousness surrounding the Ripple case. Ripple Labs has already enjoyed significant victories, particularly Judge Torres landmark ruling, which found that Ripples programmatic sales of XRP on digital exchanges and other XRP distributions were not investment contracts. The SEC, however, seeks to overturn this ruling, a goal it has cemented in its pre-argument statements.

In its appeal, the SEC specifically challenges Judge Torres decision, which favored Ripples sales and use of XRP as payment. The commission also reignited aiding and abetting charges against Ripple executives, Chris Larsen and Brad Garlinghouse. These charges had been dropped last year but resurfaced in the SECs recent filings. The appeal brief, due on January 15, will shed light on the SECs core arguments as it seeks to challenge Ripples win and possibly shape future crypto regulation.

Speculation Rises Among Ripple Supporters

As the SECs deadline looms, XRP enthusiasts are already speculating about the regulators next move. Some are confident that the SEC might drop its case before January 15. This belief is fueled by the upcoming U.S. presidential election and the possibility of a new administration that could usher in a fresh approach to crypto regulation.

Dan Thurman, an XRP community advocate, anticipates that SEC Chair Gary Gensler could exit the agency by years end, potentially paving the way for the SEC to abandon its appeal. Thurman and other XRP proponents view the 2024 election as a pivotal event. Should pro-crypto candidates succeed, they may instigate significant changes in the SECs leadership, possibly resulting in a more favorable stance towards digital assets.

With the deadline now set, the clock ticks for the SEC. The Ripple community will watch closely, hoping this chapter in the long-running saga concludes with regulatory clarity rather than courtroom battles. Whether the SEC will persist or retract remains a hot topic, but for now, the agency has its marching orders.

Text source: TronWeekly

News