Ripple CLO Predicts Timeline For SEC Appeal Resolution

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As a seasoned crypto investor with a knack for navigating regulatory waters and a keen eye for legal battles, I must say that the timeline shared by Stuart Alderoty of Ripple Labs has certainly piqued my interest. The potential appellate timeline stretching well into July 2025 feels like an eternity in this fast-paced crypto world, but as we all know, justice often takes its sweet time.

Stuart Alderoty, Ripple Labs’ Chief Legal Officer, has shared his projected timeline for the appeals procedure in the ongoing case against the U.S. Securities and Exchange Commission (SEC). His forecast suggests that the stages involving briefing submissions might stretch out until July 2025.

Ripple Vs. SEC: Potential Appellate Timeline

FOX Business journalist Eleanor Terrett recently discussed the appeals timeline with Ripple’s Stuart Alderoty on October 15. According to her report, the Securities and Exchange Commission (SEC) has until today, October 16, to file a document called Form C. This filing will provide details about the aspects of the case that the SEC intends to appeal in court.

Terrett went on, sharing Alderoty’s perspective: “In seven days, Ripple is set to submit Form C, providing additional details about its own appeal. Following this, both parties will establish a timeline for submitting their arguments, and the SEC will have up to 90 days to present its initial brief. Alderoty anticipates they’ll use the entire 90 days. This first brief will outline all the legal points the SEC intends to argue. Ripple will respond, followed by its own argument. According to Alderoty, this extensive briefing process… should extend through July 2025.

After Judge Analisa Torres of the US District Court for the Southern District of New York ruled on August 7, 2024, imposing a $125 million penalty on Ripple Labs and its executives for unregistered XRP sales that violated federal securities laws, the SEC chose to appeal. This decision followed an earlier ruling by Torres on July 13, 2023, which classified Ripple’s institutional sales of XRP as violations of federal securities laws. However, it was also determined that Ripple’s automatic sales of XRP to the public, along with distributions to employees and third parties, were not considered securities transactions.

On October 2nd, the Securities and Exchange Commission (SEC) declared their intention to challenge the initial decision by submitting an “appeal notice” to the United States Court of Appeals for the Second Circuit. At this point, the SEC has not specified the exact reasons behind their appeal. However, further details regarding the legal arguments they intend to use should be revealed in the upcoming Form C filing.

In response to the SEC’s decision to appeal, Ripple declared on October 10th that they would counter with their own appeal, known as a cross-appeal. Stuart Alderoty communicated via X: “The SEC lost on all crucial points – this is why they appealed. Today, Ripple has filed a cross-appeal to make certain no important points are overlooked, such as the assertion that an ‘investment contract’ can’t exist without the essential rights and obligations typically found in a contract.

According to Bitcoinist‘s report, attorney Fred Rispoli – a supporter of XRP – has shared his estimate about the appellate timeline, which is consistent with Alderoty’s projections but pushes the possible resolution of the case into early 2026. Rispoli explained the series of documents to be filed and responded to before the oral arguments, tentatively scheduled for somewhere between September and October 2025. He anticipates that a final decision from the Second Circuit Court of Appeals might not come until at least January 2026.

At press time, XRP traded at $0.5430.

Ripple CLO Predicts Timeline For SEC Appeal Resolution

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2024-10-16 20:11