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The Ripple Labs versus US SEC legal battle is advancing with Stuart Alderoty sharing insight into what next.
Key Notes
Ripple CLO has provided insights into the next steps in its legal battle with the SEC.This week, the markets regulator is meant to submit its Form C.The outcome of this legal battle has a wide-ranging impact in the industry.In the Ripple Labs versus the United States Securities and Exchange Commission (SEC) lawsuit, the regulator is due to file its pre-argument statement (Form C) by October. During the annual Swell Conference, Stuart Alderoty, the blockchain payment firm’s CLO, revealed the information while discussing the next step in the case.
Ripple vs SEC Briefing and Reply Cycles
This Form C is meant to provide more details about the SEC’s appeal plan and what it intends to contest. Ripple is also expected to file the same form in the next two weeks, presenting its cross-appeal. The firm has stated that it wants to contest the specific provisions of the original decision that held that borders on the institutional and retail XRP sales as unregistered securities transactions.
Following the presentation of their individual Form Cs, both parties would present a briefing date. The agency’s brief, which is the first, is due in another 90 days, and the commission will use this to present its legal points. Considering the Commission might take 90 days, its first brief submission is not due until mid-January 2025.
After that, Ripple will prepare a response and brief. At this rate, the briefings and reply cycles could drag into the middle of next year. Alderoty believes that the extended timeframe presents the blockchain payments firm with the opportunity for a stronger legal position. He emphasized that Ripple is more confident in its position in the US Court of Appeals for the Second Circuit than in the Southern District of New York.
The legal expert emphasized that a majority of the appeals in the Second Circuit hardly result in a reversal of the district court’s decision. Instead, such district court decisions are reaffirmed.
”We think this appeal will blow up in the SEC’s face,” Alderoty shared while explaining that the case outcome will set a legal precedent in the crypto landscape.
Ripple Is Confident of Potential Cross-appeal Victory
If the appeal goes in favor of the SEC, some activities in the crypto ecosystem might feel the impact. For instance, Bitwise and Canary Capital’s chances at an XRP ETF may drop significantly. Even before the agency put out its appeal, Alex Thorn, Head of Research at Galaxy Digital, noted:
“The likelihood of this ETF filing succeeding drops to near zero if the SEC does appeal.”
Meanwhile, Ripple did not let the SEC’s appeal go uncontested. Last week, it filed a cross-appeal to counter the regulator. Alderoty noted that the payment company took this step to ensure that ‘nothing is left on the table.’ Overall, Ripple is confident that the lawsuit will end in its favor.
Therefore, the SEC Chairman Gary S. Gensler and the agency are advised to accept the recent losses in the Ripple case and stop pursuing further appeals.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
