Ripple v. SEC: What New Developments Mean

New deadline

The U.S. Court of Appeals for the Second Circuit has directed the SEC to file its last arguments by Jan. 15, after which the court will assess motions to either dismiss or proceed with portions of the case.

The SEC filed suit against Ripple in December 2020, alleging that Ripple’s sale of XRP constituted an unregistered securities offering. Ripple, however, contends that XRP should be classified as a digital currency, not a security.

This classification is crucial, as a ruling against Ripple could set a regulatory precedent for other cryptocurrencies, potentially reshaping the legal environment for the entire crypto sector.

This deadline follows prolonged exchanges and disputes over XRP’s legal status and the SEC’s enforcement role in the crypto space. Ripple’s defense has argued that the SEC’s approach lacks clarity and that XRP doesn’t meet the standard definition of a security.

According to James K. Filan, a well-known figure in the XRP community, the SEC has requested an extension for filing its appeal brief until Jan. 15, 2025. Filan shared the SEC’s letter to the court in which the agency seeks this additional time.

California case

A U.S. District Court judge has issued rulings on key motions in the ongoing XRP lawsuit, where plaintiffs accuse Ripple Labs of securities law violations.

As the case advances, settlement discussions have been scheduled, with a pretrial conference set for Dec. 19 and jury selection slated for Jan. 21, 2025.

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In the recent rulings, Judge Hamilton largely sided with the plaintiffs, approving four motions under the Daubert standard. Ripple’s attempts to exclude testimony from plaintiffs' experts Jeremy Clark and Saifedean Ammous were denied.

Legal analyst Fred Rispoli has noted that XRP’s regulatory status remains uncertain, especially at the state level. He highlighted that the California case, rooted in state law, does not directly impact the SEC’s federal case against Ripple.

Until Jan. 15

On Nov. 1, the U.S. Court of Appeals for the Second Circuit has set a Jan. 15, 2025, deadline for the SEC to file its opening brief in the ongoing appeal in its case against Ripple Labs.

This brief will lay out the SEC's detailed legal arguments, backed by citations, and is considered pivotal to the appeal process, possibly influencing the final outcome for the agency.

Ripple has also filed a preargument statement for its cross-appeal, following the established record in the case, which means no new evidence will be admitted.

This phase marks a shift from the discovery disputes that defined earlier stages of the lawsuit. Legal expert Fred Rispoli has projected a ruling in early 2026.

Some observers, like XRP supporter and attorney Bill Morgan, speculate that the SEC’s extension request might indicate a lack of confidence or a bid to delay. However, former SEC regional director Marc Fagel countered this, suggesting that the SEC may not be intentionally stalling but simply following procedural timelines.