The U.S. Securities and Exchange Commission (SEC) has officially requested the court to set January 15, 2025, as the deadline for filing its principal brief in its appeal against Ripple Labs. This development comes amid Ripple’s anticipated filing of Form C, expected to occur today.
SEC Seeks Extension for Principal Brief
Defense attorney James Filan announced via an X post that the SEC is seeking to have the court approve the proposed deadline. The principal brief is a critical document that will outline the SEC’s arguments supporting its appeal against Judge Analisa Torres’ prior ruling regarding Ripple’s XRP sales on exchanges and other distributions. Notably, the appeal also involves Ripple’s Co-Founder Chris Larsen and CEO Brad Garlinghouse, whom the SEC accuses of facilitating these sales.
Chris Larsen has filed a notice of appearance, re-establishing his status as a party in the lawsuit following the SEC’s appeal. Legal experts, including former SEC lawyer Marc Fagel and legal analyst Sherrie, have suggested that the SEC’s case against Garlinghouse and Larsen may be more robust than previously thought.
Implications of the SEC’s Request
If the court approves the SEC’s request, the Commission will likely adhere to the January 15 deadline for submitting its principal brief. Ripple’s Chief Legal Officer (CLO) Stuart Alderoty recently informed FOX journalist Eleanor Terrett that he anticipates the SEC will utilize the full period allotted for its initial brief. Following that, Ripple will submit its response.
Ripple’s Form C Filing and Future Outlook
The SEC’s request coincides with Ripple’s expected filing of Form C, which will clarify the aspects of Judge Torres’ ruling that Ripple intends to cross-appeal. According to Terrett, this filing is expected today. Ripple plans to appeal Judge Torres’ ruling that deemed its XRP institutional sales as securities—the only ruling they lost at the district court level.
Both Garlinghouse and Alderoty expressed confidence in a favorable outcome for Ripple in the Second Circuit Court. Alderoty remarked, “The Second Circuit traditionally is not a fan of the SEC. They’re not supportive of regulatory overreach. Statistically, if you lose, your chances of getting the Second Circuit to reverse are around 10% or less.” He also stated that the Second Circuit is likely to affirm or expand Judge Torres’ ruling, with the best outcome for the SEC being a remand to the lower court.
As this legal battle unfolds, all eyes will be on the court’s decisions and the potential ramifications for Ripple and the broader cryptocurrency landscape.
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