SEC v. Ripple: Appeals Court Sets Key Filing Deadline in XRP Case
The Second Circuit Court of Appeals has issued its first order in the XRP lawsuit, informing parties of the January 15 filing deadline for the principal brief and outlining that no extensions or other relief requests will be granted.
Key Points:
- The US Court of Appeals for the Second Circuit has mandated January 15 as the filing deadline for the SEC’s main brief.
- Any requests to extend the deadline or seek other relief will not be accommodated.
- Ripple’s CEO Brad Garlinghouse and Executive Chairman Chris Larsen are pursuing dismissal of charges against them.
- XRP continues trading below $0.52 amid case developments.
Court Order Sets Brief Filing Deadline in SEC v. Ripple Case
In a recent October 31 filing, the appeals court ordered the US SEC to submit its opening brief for the SEC v. Ripple case by January 15, 2025. This date marks a pause in any significant lawsuit updates for the XRP community until then.
Experts attribute the delay to potential political shifts, with higher odds of SEC Chair Gary Gensler stepping down if election outcomes favor Trump.
The court has also clarified that failure to file by the deadline will result in case dismissal. Additionally, any motions to delay or seek alternative relief will not be accepted.
Garlinghouse and Larsen Seek Dismissal of Charges
The SEC’s allegations against Ripple’s leadership, specifically Garlinghouse and Larsen, have shocked the crypto community. The SEC appeals XRP sales by Ripple, Garlinghouse, and Larsen, along with XRP distributions to employees and others. Ripple, in response, challenges whether an “investment contract” requires an actual contract, post-sale obligations, and if profit depends on the seller’s actions. The company has also revived its fair notice defense.
Garlinghouse and Larsen have enlisted attorneys Nowell Bamberger, Rahul Mukhi, and Samuel Levander from Cleary Gottlieb, who previously won a dismissal for Garlinghouse in district court.
Judge Suggests “Alternative Resolution” in Ripple Labs Case
Judge Phyllis Hamilton in the Ripple Labs litigation has suggested that parties explore an “alternative resolution.” Lead plaintiff Bradley Sostack, along with Ripple Labs and Garlinghouse, has requested the court to finalize the class action claims regarding securities law violations.
Currently, XRP has dropped by 1% over the past day, trading around $0.51, with whale traders selling amid SEC v. Ripple developments. However, an analyst has suggested a $25 price target for XRP, as trading volume has risen 40% in the past 24 hours, signaling increased interest among traders.
