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The U.S. Securities and Exchange Commission (SEC) is moving forward with its appeal in the high-profile case against Ripple Labs, requesting a deadline extension for filing its principal brief. The SEC has invoked Local Rule 31.2(a)(1)(A), which outlines the briefing schedule for appeals. It allows the appellant 91 days from the “ready date” to file its brief.
SEC Filing on Primary Brief Deadline
Eleanor Terrett, a journalist from FOX, reported on X that this procedural move is standard. She said, “Pretty normal procedural stuff here. The SEC is requesting a deadline for its principal brief.” Ripple, on the other hand, is also taking steps to advance its case in the ongoing XRP vs. SEC lawsuit.
Today, the company is expected to file its Form C, a document outlining the key issues Ripple plans to appeal in the SEC’s case at the Second Circuit Court. Ripple’s focus will be on the district court’s ruling that its institutional sales of XRP constituted unregistered securities, a decision the firm is determined to overturn.
Pretty normal procedural stuff here. The @SECGov is requesting a deadline for its principal brief pursuant to Local Rule 31.2(a)(1)(A). https://t.co/kxboYNTnhy pic.twitter.com/iihqhBlcS9
— Eleanor Terrett (@EleanorTerrett) October 24, 2024
Last week, the SEC had appealed nearly all unfavorable rulings in the district court, while Ripple is appealing this singular but critical issue. The XRP firm’s legal team remains confident about their chances in the Second Circuit, with Stuart Alderoty, Ripple’s Chief Legal Officer, expressing optimism during an interview with Terrett last week.
“I felt good about our case at the district level. I feel even better about our case at the Second Circuit for a whole bunch of reasons,” said Alderoty. He also emphasized the Second Circuit’s historical stance against regulatory overreach by agencies like the SEC. He added, “The second circuit traditionally is not a fan of the SEC. They’re not a fan of regulatory overreach.”
Chances of Favorable Ruling for XRP
Alderoty went further, stating that Ripple’s odds of securing a favorable outcome are strong, especially given the statistical likelihood of a reversal in the Second Circuit. “Statistically, if you lose, your chances of getting the Second Circuit to reverse is around 10% or less,” he said. However, he tempered his confidence with caution.
Alderoty remarked, “I’m superstitious as a litigator, so I don’t like to predict results, certainly not guarantee results, but I feel very good about the Second Circuit result.” Meanwhile, Ripple CEO Brad Garlinghouse also remains confident in the company’s legal position.
🚨NEW: Today, @Ripple will file its Form C, outlining at a high level what it will seek to appeal in the @SECGov’s case in the Second Circuit.
As we saw the @SECGov appeal nearly everything it lost on at the district court level last week, Ripple is expected to appeal the only…
— Eleanor Terrett (@EleanorTerrett) October 24, 2024
He said, “I am so confident that we’re going to win the appeal and that would really put a dagger in Gary Gensler’s whole agenda around crypto regulation.” Garlinghouse highlighted that he feels no pressure regarding the outcome. He stated, “I’m not losing any sleep over it at all. I’m so confident about it because I believe we’re on the right side of the law. I think we’re on the right side of history.”
Both Alderoty and Garlinghouse expect the Second Circuit to not only uphold District Judge Analisa Torres’ ruling, but also to fortify it. This would make the SEC’s position increasingly tenuous as the case progresses through the courts. Currently, the market is awaiting the XRP firm’s FORM C filing due today.