SEC v Ripple: Second Circuit Court of Appeals Issues Order in XRP Lawsuit

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As a seasoned analyst with over two decades of experience in the financial markets, I find myself intrigued by the ongoing saga of the SEC v Ripple case. The recent order by the US Court of Appeals for the Second Circuit to set January 15, 2025, as the deadline for the SEC’s brief is a significant development that underscores the complexity and lengthy nature of this legal battle.

As a researcher, I’m following the latest updates on the SEC v Ripple case closely. Recently, the US Court of Appeals for the Second Circuit has issued an initial order regarding the ongoing XRP lawsuit. In response to the US Securities and Exchange Commission’s petition, the court has established January 15 next year as the deadline for the SEC to submit its primary brief. This ruling indicates that no significant advancements in the lawsuit are expected before this specified date.

Court Sets Brief Filing Deadline in US SEC v Ripple Labs Lawsuit

According to a document filed on October 31st, the appellate court has set a deadline for the U.S. Securities and Exchange Commission (SEC) to submit their initial arguments in the SEC vs Ripple Labs case by January 15, 2025.

According to a court scheduling order filed recently, the U.S. Securities and Exchange Commission (SEC) has asked the court to establish an initial deadline for filing briefs. Some experts suggest that this delay might be related to an increase in Donald Trump’s chances of winning the U.S. presidential election, which may also mean an increased likelihood of SEC Chair Gary Gensler stepping down.

Furthermore, the court stated that if a brief isn’t submitted by the set deadline, the appeals will automatically be dismissed. Additionally, the court made it clear to the parties involved in SEC vs Ripple that no requests for extending the date or seeking any other form of relief will be entertained.

SEC v Ripple: Second Circuit Court of Appeals Issues Order in XRP Lawsuit

Brad Garlinghouse and Chris Larsen Seek To Dismiss Charges

As a researcher, I found it surprising when the U.S. Securities and Exchange Commission (SEC) levied securities law violation charges against Brad Garlinghouse, Ripple’s CEO, and Chris Larsen, its Executive Chairman. The SEC has taken issue with Ripple’s sales of XRP, transactions made by Garlinghouse and Larsen, as well as the distribution of XRP to employees and others by the company itself.

In the meantime, Ripple is challenging the idea that an “investment contract” necessitates a formal agreement, post-purchase obligations of the seller, and profits tied to the seller’s actions. They are also disputing potential errors in the district court’s rulings and the application of the decades-old Howey test to cryptocurrencies. Additionally, Ripple has reintroduced the “fair notice defense” in their lawsuit with the SEC.

In the legal battle between Garlinghouse and the SEC (Securities and Exchange Commission), both parties enlisted the services of the same legal team, which managed to get all charges against Garlinghouse dropped in a district court. This team includes lawyers such as Nowell Bamberger, Rahul Mukhi, and Samuel Levander from Cleary Gottlieb Steen & Hamilton LLP.

Judge Orders “Alternative Resolution” In re Ripple Labs Case

According to an initial report by CoinGape, Judge Phyllis Hamilton in the In re Ripple Labs Inc Litigation has suggested that all parties involved should explore an “out-of-court settlement” or “mediation.” The lead plaintiff, Bradley Sostack, along with Ripple Labs, XRP II, and Brad Garlinghouse, had asked the court to issue a final verdict on the plaintiff’s class action claims related to securities law violations.

Over the past 24 hours, XRP’s price has decreased by 1%, now standing at approximately $0.51. During this period, the lowest and highest prices were recorded as $0.503 and $0.520 respectively. Notably, large investors (whales) are offloading their XRP holdings as the SEC vs Ripple court case unfolds.

However, an analyst has predicted a $25 price target for XRP. The trading volume has increased by 40% in the last 24 hours, indicating a rise in interest among traders.

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2024-11-01 11:20