In a significant move, the United States Securities and Exchange Commission (SEC) has filed with the US Court of Appeals for the Second Circuit, requesting an extension for the deadline to submit its principal brief by January 15, 2025. This development was made public by James K Filan, a defense lawyer and former federal prosecutor, via a post on X. Meanwhile, Ripple Labs has also filed its pre-argument statement in Form C with the same court, outlining the issues it plans to appeal in the Second Circuit.
Under the leadership of Chair Gary Gensler, the US SEC is contesting the ruling by Judge Analisa Torres, which stated that XRP sales through cryptocurrency exchanges do not qualify as investment contracts, distinguishing them from sales to institutional investors. On the other side, Ripple seeks an appeal to gain further clarity on the application of the Howey test to digital assets, specifically XRP.
Experts Take on the SEC vs Ripple Appeal Case
As the US gears up for the 2024 presidential and congressional elections, the crypto community, including Ripple, is keenly observing the political landscape. Many are hopeful for a victory by Republican presidential candidate Donald Trump, who has expressed intentions to advance the crypto industry in the United States. One of his first proposed actions is to dismiss SEC Chair Gary Gensler from office on his first day as President.
Jeremy Hogan, a well-known crypto-affiliated lawyer, suggests that the SEC might face substantial setbacks by January 15 if the new administration decides to abandon crypto persecutions and drop all pending charges. He humorously notes the irony if the SEC were to complete an exceptional brief by January 15, only for its relevance to be nullified by a change in leadership on January 20.
Impact on XRP Market Ahead of Anticipated Altseason
While some experts anticipate that the Ripple vs SEC case may conclude by 2026, the XRP community remains vigilant about potential setbacks during the eagerly awaited altseason in the upcoming months. The SEC’s lawsuit against Ripple had a significant impact on the XRP market during the 2021 bull run, causing widespread concern among investors.
However, trial lawyer Fred Rispoli believes that the SEC’s influence on XRP has substantially diminished in recent times. He reassures the community that the outcome of the SEC case is unlikely to be the sole determinant of Ripple and XRP’s success in the current crypto climate.
In conclusion, as the legal battle between the SEC and Ripple continues, its outcome will have far-reaching implications for the crypto industry. The market remains watchful, with many looking forward to the anticipated altseason and potential shifts in the regulatory landscape.
