The SEC’s Appeal: Ripple’s Ripple Effects
The U.S. Securities and Exchange Commission (SEC) has recently taken a significant step by filing its Form C, appealing a court decision concerning Ripple’s XRP sales. This appeal, which has garnered notable attention, focuses on three crucial aspects: the sale of XRP through exchanges, the allocation of XRP to employees, and the transactions conducted by Ripple’s executives, Brad Garlinghouse and Chris Larsen.
Ripple’s Procedural Challenge
In a recent twist, Ripple Labs encountered a procedural hurdle due to a missed filing deadline. The U.S. Court of Appeals for the Second Circuit issued a default notice to Ripple’s legal team. This notice was a consequence of their failure to submit an Acknowledgement and Notice of Appearance form by the crucial October 18, 2024 deadline.
However, the court has shown leniency by granting Ripple a 14-day extension. This gives the team until November 1, 2024, to file the necessary documents. While this extension is a reprieve, failing to meet the new deadline could have severe repercussions. Ripple’s lawyers might be barred from presenting their case in the forthcoming appeal hearing unless they receive special permission from the court.
Expert Opinion on the Missed Deadline
Fred Rispoli, an attorney known for his support of XRP, commented on the situation. He noted that although missing a filing deadline isn’t ideal, it is not catastrophic. However, he pointed out that such oversights are concerning, especially when considering the substantial legal fees Ripple incurs, which amount to approximately $8,000 per hour.
Rispoli expressed his thoughts, stating, “This time Ripple failed to file a form on time. Not a big deal but also not the kind of thing you are thrilled to see when you are paying a collective $8,000 per hour from your legal team.”
In Other News: Chris Larsen’s Generous Donation
In a separate development, Ripple co-founder Chris Larsen has made headlines with his substantial donation of over $11.8 million to support Kamala Harris’s presidential campaign. This donation includes a significant $10 million contribution made in XRP in September. In a recent post, Larsen emphasized the importance of Democrats adopting innovative approaches to technological advancement, particularly in the realm of cryptocurrency. He expressed confidence that Harris will play a pivotal role in ensuring that America maintains its leadership in technology on the global stage.
As the SEC’s appeal unfolds and Ripple navigates its legal challenges, the developments surrounding XRP continue to be a focal point in the ongoing dialogue about cryptocurrency regulation and innovation in the United States.
