US Court of Appeals Sets January 15, 2025 Deadline for SEC’s Ripple Appeal
The US Court of Appeals for the Second Circuit has ordered the US Securities and Exchange Commission (SEC) to file its principal appeal brief against Ripple Labs by January 15, 2025. The agency had requested a deadline extension until the same date.
Initially, the SEC missed its submission deadline for the appeal brief, prompting the regulator to petition for a delay. Defense lawyer James K. Filan shared the SEC’s official request and the Court of Appeal’s decision on the matter.
In its response, the court approved the SEC’s request but warned that failure to file the brief by January 15 would result in the appeal being dismissed. Furthermore, the court stated that any additional requests for extensions or relief would not alter the filing deadline.
The legal battle stems from a 2023 ruling by Judge Analisa Torres, which found that Ripple’s XRP token sales on exchanges did not constitute investment contracts under the Howey Test. However, the judge ordered Ripple to pay a $125 million fine for institutional XRP sales, which she deemed a violation of securities laws.
SEC’s Appeal and Ripple’s Cross-Appeal
The SEC has appealed parts of the ruling, contesting Ripple’s programmatic XRP sales on crypto trading platforms and personal sales by top executives Brad Garlinghouse and Christian Larsen. Ripple responded with a cross-appeal, challenging specific aspects of Judge Torres’s decision.
Ripple’s appeal raises four key points, including the definition of “investment contract” under the Securities Act of 1933. The company argues that such a contract requires a formal agreement, post-sale obligations, and a guarantee of profit for the buyer, which it claims does not apply to its XRP transactions.
Ripple also targets the “fair notice” doctrine, arguing that the SEC and other regulators failed to provide adequate guidance on the status of cryptocurrencies under federal law. The company claims it informed XRP buyers about this regulatory uncertainty.
The case, which has spanned over four years, has seen numerous delays, frustrating the XRP community.
