The U.S. Securities and Exchange Commission has been given a final deadline of January 15, 2025, to file its opening brief in its appeal against Ripple Labs. If the SEC fails to meet this deadline, the Second Circuit Court of Appeals will dismiss the appeal, potentially ending the years-long case that has captivated the crypto community. This development represents a critical moment for both Ripple and the regulatory landscape for cryptocurrency in the United States, as the case’s outcome could have far-reaching implications.
The document above is an official order from the United States Court of Appeals for the Second Circuit. It specifies that the SEC, designated as the “Appellant-Cross-Appellee,” must submit its brief by the set date of January 15, 2025. This order was filed in response to a scheduling notification by the SEC’s counsel, following a request for additional preparation time due to the complexities of the case. The court’s message is clear: if the SEC misses this deadline, its appeal will be automatically dismissed, bringing Ripple one step closer to a legal victory.
The order also underscores that no additional time extensions will be granted that could affect this filing deadline. The court refers to a past ruling, RLI Insurance Co. v. JDJ Marine, Inc., to reinforce that this deadline is final, emphasizing the urgency and seriousness with which the court is handling the case.
Background on the SEC v. Ripple Case
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The SEC’s lawsuit against Ripple Labs began in December 2020, when the agency alleged that Ripple conducted an unregistered securities offering through its sale of XRP tokens. Ripple has consistently refuted these claims, maintaining that XRP is not a security. The case has become one of the most closely watched in the crypto space, as it may set a precedent for how other digital assets are regulated in the U.S.
A major turning point came in July 2023, when U.S. District Judge Analisa Torres issued a mixed ruling. Judge Torres ruled that XRP sales to institutional investors did violate securities laws, but sales on public exchanges did not. This partial victory for Ripple was celebrated by the crypto community, as it signaled that public XRP sales might be exempt from securities regulations.
The SEC subsequently filed an appeal, hoping to challenge Judge Torres’ ruling and reassert its authority over certain aspects of the crypto market. Ripple, in turn, filed a cross-appeal to dispute the parts of the ruling that went against the company. The case took another twist in October 2024 when the SEC requested additional time for filing, which the court granted with a strict deadline set for early 2025.
Optimism for Ripple
With the court-imposed deadline in place, the crypto community is optimistic about Ripple’s prospects. XRP has already seen a surge in trading volume, reflecting investor confidence in the company’s chances. Ripple’s leadership, including CEO Brad Garlinghouse and Executive Chairman Chris Larsen, continues to push back against the SEC’s claims, aiming for a definitive ruling that would dismiss the remaining securities charges.
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As the January 15, 2025, deadline looms, Ripple’s case is at a pivotal point. A dismissal of the SEC’s appeal would not only be a victory for Ripple but could also reinforce the stance that certain digital assets may not fall under traditional securities laws.
