In a crucial development in the ongoing SEC vs. Ripple lawsuit, Ripple co-founder Chris Larsen has filed a Notice of Appearance just before the impending deadline for Form C submission, effectively averting a potential procedural default.
Key Developments Ahead of the Deadline
On October 22, the US Appeals Court for the Second Circuit issued a warning to Ripple about a potential default related to their Form C submission for a cross-appeal against the SEC. In response to this alert, Chris Larsen submitted the Notice of Appearance, ensuring Ripple maintains its participation in the case. This submission is essential as Ripple aims to solidify its position before the deadline of October 24 at 11:59:59 PM EST.
Ripple’s Legal Strategy
Ripple’s legal team is confident that the SEC’s appeal will not succeed in overturning Judge Torres’s ruling, which stated that XRP is not classified as a security. Ripple’s Chief Legal Officer (CLO), Stuart Alderoty, reinforced this stance, noting that the SEC’s Form C does not contest the original ruling. Alderoty remarked, “That decision stands as the law of the land,” and expressed skepticism about the SEC’s chances in the appeal process, suggesting that the best outcome for the SEC might be a remand rather than a reversal of the original decision.
Recent Context in the Lawsuit
The SEC vs. Ripple case has gained significant attention, particularly following the $125 million settlement announced earlier this year. Both parties have engaged in last-minute maneuvers as they approach critical deadlines. Although there were initial speculations that the SEC might have missed its appeal deadline, the regulator confirmed it had filed the necessary paperwork.
The XRP community has been closely monitoring the lawsuit, eager for a resolution that could potentially catalyze a significant rally in XRP prices. Currently, XRP has struggled to maintain levels above $1, but some investors remain optimistic, predicting a rise to as high as $17 if the lawsuit concludes favorably.
Implications of the Lawsuit
Should Ripple succeed in its cross-appeal and ultimately conclude the SEC’s enforcement actions, it could set a precedent for the broader cryptocurrency market. A favorable outcome might not only boost XRP’s price but could also enhance investor confidence in other digital assets facing regulatory scrutiny.
As the October 24 deadline looms, all eyes will be on Ripple and the developments in this high-stakes legal battle, which could reshape the landscape for cryptocurrencies in the US.
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