The United States Court of Appeals for the Second Circuit has issued an order in the XRP lawsuit between the Securities and Exchange Commission (SEC) and Ripple Labs, Inc. The court has mandated that the SEC must file its appellate brief by January 15, 2025, setting a firm deadline.
Ripple Case Update: New SEC Filing Deadline
The court's order, dated October 31, 2024, states unequivocally: “It is HEREBY ORDERED that Appellant-Cross-Appellee's brief must be filed on or before January 15, 2025. The appeal is dismissed effective January 15, 2025, if the brief is not filed by that date. A motion to extend the time to file the brief or to seek other relief will not toll the filing date.”
This stringent directive emphasizes that failure to comply will result in the dismissal of the SEC's appeal, underscoring the court's insistence on adherence to procedural timelines.
The order by the court follows recent controversy surrounding the SEC's filing of Form C, which outlines the specific issues the agency intends to address on appeal. Within the XRP legal community, there was considerable speculation that the SEC had missed the deadline for this crucial filing.
The SEC managed to submit Form C just before the debated deadline on October 17, 2024. The exact cutoff was a point of contention, with discussions centering on whether it fell on October 16 or 17. A missed deadline could have jeopardized the SEC's ability to proceed with the appeal. However, legal experts noted that while missing such a deadline constitutes a procedural error, courts often afford federal agencies some leeway to rectify these mistakes.
The court's order elicited notable reactions from legal professionals engaged in the XRP community. Pro-XRP attorney Bill Morgan commented on X: “At least the consequences for not meeting this deadline are clear.”
Commercial litigator and Bitcoin advocate Joe Carlasare observed: “This is the standard order.” Carlasare's comment suggests that while the order is strict, it aligns with typical procedural directives in appellate cases, not relating to the previous Form C filing by the SEC.
Adding another layer of complexity, the upcoming US presidential election could significantly influence the SEC's approach to the case. If former President Donald Trump succeeds against Vice President Kamala Harris, regulatory leadership may shift. At the Bitcoin 2024 conference, Trump made a bold assertion that he will fire Securities and Exchange Commission Chair Gary Gensler on day one.
This statement has fueled speculation that a new SEC chair under a Trump administration might opt to drop the case against Ripple before the January 15 deadline. However, if Trump loses, the next major date is set in the Ripple vs. SEC box.
At press time, XRP traded at $0.5117.
Featured image created with DALL.E, chart from TradingView.com
